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Lundin Mining (OTCPK:LUNMF) +3.6% in Wednesday’s trading after saying it will exercise its option to increase its ownership of the Caserones copper and molybdenum mine in Chile to 70% by acquiring an additional 19% interest for C$350M.
With the call option exercise, Lundin (OTCPK:LUNMF) will be entitled to a yearly operator fee in the form of a preferred dividend, which will increase to $28M/year, effective from the start of 2025.
“Exercising our option early provides significant benefits to both parties: We secure additional copper production at an attractive acquisition price, while our partners receive an upfront payment and retain a meaningful 30% equity position in Caserones,” President and CEO Jack Lundin said.
The Caserones mine, located in Chile’s Atacama desert, is expected to produce 120K-130K metric tons of copper and 2.5K-3K tons of molybdenum this year on a 100% basis.