Lundin Mining Corp.and Inmet Mining Corp. have agreed to merge in a deal with a market capitalization of $9-billion.
The companies will combine to create a copper production company to be called Symterra Corp.
The deal will give each holder of one Inmet share 3.4918 shares of Symterra, while each holder of a Lundin share will receive 0.3333 shares of the new company.
“The long-term fundamentals for copper are compelling,” Lundin chairman Lukas Lundin said in a statement. “With solid operating assets and the ability to fund its world class growth projects, Symterra provides one of the best growth profiles for copper amongst major mining companies, combined with attractive exposure to zinc and other metals.”
Mr. Lundin and Lundin family trusts, representing 12.32 per cent of Lundin, have made agreements to vote their shares in favour of the proposed merger.
Mr. Lundin and related parties are the principal shareholders of Newstrike Capital Inc.
Internationally recognized for their foresight and their abilities in identifying superior investment opportunities in the natural resource sector, the Lundin Group’s endeavors have led the development of several world class mineral deposits and significant gains for shareholders who participated in their ventures.
source: Globe and Mail