Lundin closes $1 billion acquisition of Chapada copper-gold mine

Lundin Mining on Friday announced it has closed the acquisition of a 100% ownership stake in Mineração Maracá Indústria e Comércio S/A, which owns the Chapada copper-gold mine in Brazil from Yamana Gold.

The Chapada mine, in the northwest state of Goiás, began production in 2007 and is expected to churn out about 54,500 tonnes of copper and 100,000 ounces of gold this year.

The deal was first announced in April.

Total cash consideration paid at closing by the Lundin was $800 million, funded by cash on hand and the Company’s $550 million revolving credit facility.

Yamana retains a 2.0% net smelter return (NSR) royalty on future gold production from the Suruca gold deposit, receives contingent consideration of up to $125 million over five years if certain gold price thresholds are met and contingent consideration of $100 million on potential construction of a pyrite roaster.