Swedish mining company Car (ST:) announced the acquisition of two mines from Lundin Mining (OTC:). The deal, worth up to $1.45 billion, includes the Neves-Corvo mine in Portugal and the Zinkruvan mine in Sweden.
Boliden CEO Mikael Staffas said the acquisition of the cash-flow-generating mines is consistent with the company’s powerful industrial logic and strategic fit. Both Neves-Corvo and Zinkruvan are underground mines producing zinc, lead and silver, with processing plants.
The transaction includes an upfront cash payment of $1.3 billion and additional contingent payments that could total up to $150 million. Boliden plans to finance this upfront payment through a combination of equity issuance and debt.
The company expects this acquisition to have an immediate positive impact on earnings per share. The mines are expected to contribute between $300 million and $350 million to group earnings before interest, tax, depreciation and amortization (EBITDA) over the next five years.
Completion of this acquisition is expected in mid-2025, pending necessary regulatory approvals.
On the other side of the deal, Lundin said the deal is valued at up to $1.52 billion with an upfront cash payment of $1.37 billion.
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