{"id":1111049,"date":"2019-04-15T20:55:22","date_gmt":"2019-04-15T20:55:22","guid":{"rendered":"http:\/\/resourceworld.com\/?p=55347"},"modified":"2019-04-15T20:55:22","modified_gmt":"2019-04-15T20:55:22","slug":"lundin-buys-yamana-mine-for-us800-million","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1111049","title":{"rendered":"Lundin buys Yamana mine for US$800 million"},"content":{"rendered":"
\"\"<\/a><\/p>\n

Yamana Gold\u2019s copper-gold Chapada Mine in Brazil which Lundin Mining is acquiring. Source Yamana Gold Inc.<\/p>\n<\/div>\n

Lundin Mining Corp.<\/strong> [LUN-TSX; LUMI-Sweden] said Monday April 15 that it has struck a deal to acquire Yamana Gold<\/strong>\u00a0Inc.<\/strong>\u2019s [YRI-TSX; AUY-NYSE] 100% interest in the Chapada copper-gold mine in Brazil for US$800 million.<\/p>\n

Under the definitive purchase agreement, Yamana will retain a 2.0% net smelter return royalty on future gold production from the Suruca gold deposit and contingent payments of about US$225 million.<\/p>\n

Located in Brazil\u2019s Goias State, the Chapada orebodies are part of a large copper-gold mineralized system located in gently undulating terrain at low elevation, approximately 270 km northwest of the national capital of Brasilia.<\/p>\n

A traditional open-pit truck and shovel operation, Chapada is expected to produce approximately 54,500 tonnes of copper and 100,000 ounces of gold this year (75,000 tonnes of copper equivalent) at a co-product cash cost of between US$1.60 and US$1.80 a pound for copper and US$430 per ounce for gold equivalent.<\/p>\n

In 2018, the operation produced approximately 58,600 tonnes of copper and 121,000 ounces of gold or approximately 82,000 tonnes of copper equivalent at a cash production cost of US$1.74 per pound and US$388 per ounce of gold equivalent.<\/p>\n

\u201cThe acquisition of Chapada complements Lundin Mining\u2019s existing portfolio of high-quality mines and highlights our focus on disciplined capital allocation to create long-term shareholder value,\u201d said Lundin President and CEO Marie Inkster.<\/p>\n

\u201cThe addition of Chapada further solidifies Lundin Mining\u2019s position as a leading intermediate base metals producer with high-quality low-cost copper exposure,\u201d she said.<\/p>\n

Lundin shares advanced on the news, rising 9.44% or 64.5 cents to $7.47 on volume of 3.75 million. The shares are trading in a 52-week range of $4.70 and $8.96.<\/p>\n

Lundin is planning to pursue a phased potential expansion of the Chapada operation to 28.0-32 million tonnes per year from the current 23.4 million-tonne level. The expansion, as previously identified by Yamana, is expected to increase the annual output to 68,000-73,000 tonnes of copper and 110,000 ounces of gold from the current 55,000 tonne copper and 100,000 ounce gold level at an estimated capital cost of US$250 million.<\/p>\n

New of the Chapada acquisition comes after Lundin recently said it was looking to spend up to US$3 billion to acquire new copper assets following its failed bid to acquire Nevsun Resources Ltd.<\/strong> [NSU-TSX; NYSE AMERICAN].<\/p>\n

Nevsun rejected the offer from Lundin and has since entered a definitive agreement with China\u2019s Zijin Mning, which has pledged to acquire all of the outstanding shares of Nevsun for $1.86 billion or $6 a share.<\/p>\n

During a recent interview with Reuters News Service, Inkster said Lundin will stick with its strategy of disciplined bids and a focus on low-risk jurisdictions. She said an ideal acquisition would be a mine that would operate for at least 10 years in low-risk areas.<\/p>\n","protected":false},"excerpt":{"rendered":"

Lundin Mining Corp. [LUN-TSX; LUMI-Sweden] said Monday April 15 that it has struck a deal to acquire Yamana Gold Inc.’s [YRI-TSX; AUY-NYSE] 100% interest in the Chapada copper-gold mine in Brazil… Read more »<\/a><\/span><\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[622],"tags":[48],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1111049"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1111049"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1111049\/revisions"}],"predecessor-version":[{"id":1111050,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1111049\/revisions\/1111050"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1111049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1111049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1111049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}