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Lundin Mining has completed the sale of its Neves-Corvo operation in Portugal and Zinkgruvan operation in Sweden to Boliden for a total consideration of up to $1.52bn.
Boliden has acquired 100% of the shares of Somincor–Sociedade Mineira de Neves-Corvo, which operates Neves-Corvo, and 100% of the shares of Zinkgruvan Mining Aktiebolag and North Atlantic Natural Resources Aktiebolag, which together operate Zinkgruvan.
Lundin received initial cash proceeds of $1.4bn, inclusive of accrued interest since 31 August 2024, upon closing.
Lundin signed a definitive agreement with Boliden for the sale in December last year.
The sale strengthens Lundin Mining's balance sheet and is expected to support the company's growth plans, particularly in the Vicuña District along the Chile-Argentina border.
The agreement includes future contingent payments of up to $150m, which are dependent on commodity prices and the fulfilment of certain conditions.
Up to $100m in contingent payments at Neves-Corvo are linked to the prices of copper and zinc.
Boliden will pay Lundin Mining 60% of the incremental revenue realised when the average realised prices for copper and zinc exceed $4.50/lb and $1.30/lb, respectively, for each of the three calendar years from 2025 to 2027, based on London Metal Exchange (LME) reference prices.
Additionally, up to $50m in contingent payments at Zinkgruvan are tied to the zinc price.
Boliden will pay Lundin 50% of the incremental revenue realised if the average realised zinc price exceeds $1.40/lb for each of the two calendar years from 2025 to 2026, according to LME reference prices, provided that a minimum annual production of 135 million pounds of payable zinc is achieved.
Lundin Mining president and CEO Jack Lundin said: “The sale of Neves-Corvo and Zinkgruvan marks the close of a pivotal chapter for Lundin Mining, one that elevated our profile and laid the groundwork for the growth we are now poised to deliver. With a more focused portfolio and a strengthened balance sheet, we are well-positioned for what is ahead.
“As we enter the next phase, led by our high-potential growth strategy in the Vicuña District, we do so with enhanced financial flexibility to drive long-term shareholder value. Operationally, we remain on track to meet our guidance, which excludes the Neves-Corvo and Zinkgruvan assets.”
In March 2025, Lundin signed an exclusivity deal with Talon Metals to negotiate a potential earn-in agreement for up to a 70% stake in the Boulderdash and Roland nickel-copper exploration projects in the US.