TORONTO - BHP Investments Canada Inc. (BHP Canada) and Lundin Mining (OTC:LUNMF) Corporation have concluded the acquisition of Filo Corp., a company listed on the Toronto Stock Exchange, and established a 50/50 joint venture to advance the Filo del Sol and Josemaria copper projects in the Vicuña district of Argentina and Chile. This move was completed on Wednesday, January 15, 2025, following an announcement made on July 30, 2024.
The newly formed joint venture, Vicuña Corp., will control both copper projects, with BHP Canada and Lundin Mining contributing equal shares. Prior to this transaction, Lundin Mining was the sole owner of the Josemaria project, from which BHP Canada has now acquired a 50% interest.
The total cash payment by BHP for this transaction amounted to US$2.0 billion. BHP Canada's portion of the payment for the Filo acquisition was C$2.0 billion (US$1.4 billion), at C$33.00 per Filo Corp. share. Additionally, Lundin Mining's contribution was C$877.8 million in cash alongside 94.1 million Lundin Mining shares. For the Josemaria project, BHP Canada provided a US$690 million cash consideration to Lundin Mining.
Vicuña Corp. will operate independently from its parent companies and manage the projects, with BHP Canada and Lundin Mining having equal representation on the joint venture's board.
Mike Henry, BHP's CEO, expressed enthusiasm for the partnership with Lundin Mining, highlighting the potential for substantial shareholder value and adherence to international industry standards in developing the copper projects. He pointed out copper's importance in supporting global economic growth and the transition to renewable energy.
The completion of this acquisition follows shareholder approval on September 26, 2024, and the final court order for the plan of arrangement. Vicuña Corp.'s governance will be outlined in a shareholder agreement among BHP Canada, Lundin Mining, and the joint venture itself.
This strategic partnership and development of the Vicuña district's copper resources are indicative of the companies' commitments to expanding their footprint in the global copper market. The information for this article is based on a press release statement.
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