Swedish mining company Boliden (ST:) has announced the acquisition of two mines from Lundin Mining (OTC:). The deal, valued at up to $1.45 billion, includes the Neves-Corvo mine in Portugal and the Zinkgruvan mine in Sweden.
Boliden’s Chief Executive Mikael Staffas expressed that the acquisition of these cash flow generative mines holds strong industrial logic and strategic fit for the company. Both Neves-Corvo and Zinkgruvan are underground mines that produce zinc, , lead, and silver and are equipped with on-site processing facilities.
The transaction involves 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 a share issue and debt.
The company anticipates that this acquisition will have an immediate positive impact on earnings per share. Over the next five years, the mines are expected to contribute between $300 million and $350 million to the group’s earnings before interest, tax, depreciation, and amortization (EBITDA).
The completion of this acquisition is projected for mid-2025, pending the necessary regulatory approvals.
On the other side of the deal, Lundin has reported that the transaction is valued at up to $1.52 billion, with an upfront cash consideration of $1.37 billion.
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