Vancouver – In a continuation of its plan to become a major international mining house, Lundin Mining (LUN-T, LMC-X) has tabled a $1.4-billion share exchange deal to acquire sister company Tenke Mining (TNK-T).
The latest in a series of acquisitions by Lundin, the deal to acquire Tenke brings its 24.75% interest in the giant Tenke Fungurume copper-cobalt deposit, in the Democratic Republic of Congo, into Lundins portfolio of base metal operations.
It also aims to balance out the amount of nickel, copper and zinc that Lundin produces in the future from mining operations located in Sweden, Ireland, Spain and Portugal in the future.
Under an agreement that is being completed by way of a plan of arrangement, Tenke shareholders will be offered 1.73 shares of Lundin Mining for each Tenke share they hold. The offer represents a 31.2% premium on Tenkes 20-day volume weighted average trading price as of April 10th.
Upon closure of the deal, Lundin Mining will have 389.9 million shares outstanding with Tenke shareholders owning about 27% of the total.
Just last week Lundin Mining tabled a takeover bid for nickel-gold producer Rio Narcea Gold Mines (RNG-T) valued at about $865 million.
Shares of Lundin Mining slipped almost a dollar apiece in April 11th trading to close at $13.90 while shares of Tenke Mining soared more than 2% to close up $4.42 at $23.95 apiece.
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