Lundin Mining Buying Tenke - TheStreet

Lundin Mining Buying Tenke

The deal is worth $1.37 billion.
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Lundin Mining (LMC) agreed to buy Tenke Mining for $1.37 billion in stock.

Vancouver, B.C.-based Lundin said it will issue 1.73 shares for each share of Tenke, giving Tenke holders a 31% premium to their 20-day average trading price. Tenke holders will end up with a 27% stake in Lundin.

Tenke holds an interest in the Tenke Fungurume copper/cobalt deposits under development in the Democratic Republic of Congo as well as extensive copper/gold exploration properties in South America. Tenke will convey its South American assets and cash in the amount of US $5 million to a newly-incorporated, wholly-owned subsidiary. The shares of the newly-incorporated company will be distributed to Tenke shareholders.

Karl-Axel Waplan, CEO of Lundin Mining, said, "The Tenke Fungurume project will add enormous value to the company and both Tenke and Lundin Mining shareholders. The mineralization is so extensive, with multiple high-grade copper/cobalt deposits throughout a 1,500 square kilometre area, that it is virtually an entire mining district unto itself. Lundin Mining is a dynamic, rapidly growing company with an exceptionally strong balance sheet and the addition of one quarter of the world's richest and largest new copper development creates a powerful player in the mining industry. This deal represents another important step in our plans to develop Lundin Mining into a major global mining house."