BHP completes acquisition of Filo and JV with Lundin Mining
BHP Canada and Lundin Mining have also formed the Canadian-incorporated JV company Vicuña Corp
16 January 2025 - 07:51
byJacqueline Mackenzie
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Resources group BHP and Lundin Mining have completed the acquisition of Toronto-listed Filo Corp, which owns 100% of the Filo del Sol copper project in South America, and the formation of a joint venture (JV) to progress the Filo del Sol and Josemaria projects.
BHP Canada and Lundin Mining have also formed the Canadian-incorporated JV company Vicuña Corp to hold the FDS copper project and the Josemaria copper project located in the Vicuña district of Argentina and Chile. BHP Canada and Lundin Mining each owned 50% of the JV, BHP said in a statement on Thursday.
Before completion, Lundin Mining owned 100% of the Josemaria project. At completion, BHP Canada acquired a 50% interest in the copper project from Lundin Mining. BHP Canada and Lundin Mining then contributed their respective 50% interests in Filo Corp and the Josemaria project into the JV.
BHP’s total cash payment for the transaction was $2bn.
At the time of announcing the deal in July 2024, BHP CEO Mike Henry said the JV would create a long-term partnership between BHP and Lundin Mining to jointly develop an emerging copper district with world-class potential.
“BHP is pleased to be partnering with Lundin Mining in the Vicuña JV, an exciting new copper growth opportunity for both companies. Leveraging the complementary capabilities of Lundin Mining and BHP, the development of Vicuña’s projects aims to deliver substantial value to shareholders, as well as to other stakeholders. The projects will be developed and will operate in line with international industry standards,” Henry said in a statement on Thursday.
The total consideration for the Filo acquisition was C$4bn, excluding the Filo shares already held by Lundin Mining and BHP.
BHP Canada’s share of the consideration for the Filo acquisition was C$2bn in cash at C$33 per Filo share. Lundin Mining’s share of the consideration for the acquisition was C$877.8m in cash and 94.1-million Lundin Mining shares. BHP Canada paid Lundin Mining $690m for a 50% interest in the Josemaria project.
The acquisition was approved by Filo Corp shareholders on September 26 2024 and the final court order for the plan of arrangement had been obtained, BHP said.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
BHP completes acquisition of Filo and JV with Lundin Mining
BHP Canada and Lundin Mining have also formed the Canadian-incorporated JV company Vicuña Corp
Resources group BHP and Lundin Mining have completed the acquisition of Toronto-listed Filo Corp, which owns 100% of the Filo del Sol copper project in South America, and the formation of a joint venture (JV) to progress the Filo del Sol and Josemaria projects.
BHP Canada and Lundin Mining have also formed the Canadian-incorporated JV company Vicuña Corp to hold the FDS copper project and the Josemaria copper project located in the Vicuña district of Argentina and Chile. BHP Canada and Lundin Mining each owned 50% of the JV, BHP said in a statement on Thursday.
Before completion, Lundin Mining owned 100% of the Josemaria project. At completion, BHP Canada acquired a 50% interest in the copper project from Lundin Mining. BHP Canada and Lundin Mining then contributed their respective 50% interests in Filo Corp and the Josemaria project into the JV.
BHP’s total cash payment for the transaction was $2bn.
At the time of announcing the deal in July 2024, BHP CEO Mike Henry said the JV would create a long-term partnership between BHP and Lundin Mining to jointly develop an emerging copper district with world-class potential.
“BHP is pleased to be partnering with Lundin Mining in the Vicuña JV, an exciting new copper growth opportunity for both companies. Leveraging the complementary capabilities of Lundin Mining and BHP, the development of Vicuña’s projects aims to deliver substantial value to shareholders, as well as to other stakeholders. The projects will be developed and will operate in line with international industry standards,” Henry said in a statement on Thursday.
The total consideration for the Filo acquisition was C$4bn, excluding the Filo shares already held by Lundin Mining and BHP.
BHP Canada’s share of the consideration for the Filo acquisition was C$2bn in cash at C$33 per Filo share. Lundin Mining’s share of the consideration for the acquisition was C$877.8m in cash and 94.1-million Lundin Mining shares. BHP Canada paid Lundin Mining $690m for a 50% interest in the Josemaria project.
The acquisition was approved by Filo Corp shareholders on September 26 2024 and the final court order for the plan of arrangement had been obtained, BHP said.
MackenzieJ@arena.africa
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