TORONTO, July 27,
2023 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI)
Lundin Mining Corporation ("Lundin Mining" or the "Company")
is pleased to announce the closing of a three-year term loan ("Term
Loan") in a principal amount of $800 million, with an
additional $400 million accordion becoming available upon
receipt of additional binding commitments and closing of up to an
additional nineteen (19%) interest in SCM Minera Lumina Copper
Chile ("Lumina Copper") and satisfaction of relevant conditions
precedent.
The Company has used the Term Loan to refinance the drawdown
under the existing $1.75 billion
revolving credit facility used to fund the upfront cash
consideration of $800 million for the
acquisition of fifty-one percent (51%) of the issued and
outstanding equity of Lumina Copper, which owns the Caserones
copper-molybdenum mine in Chile.
The Term Loan bears interest on US dollar denominated drawn
funds at an annual rate equal to the Term Secured Overnight
Financing Rate plus a credit spread adjustment plus an applicable
margin of 1.60% to 2.65%, depending upon the Company's net leverage
ratio. The Company is working with the Co-Sustainability
Structuring Agents to establish a sustainability-linked component
to the Term Loan and the existing revolving credit facility. The
Term Loan is unsecured, save and except for a charge over certain
assets in the United States of
America, and has similar covenants to the Company's existing
$1.75 billion revolving credit
facility.
BMO Capital Markets, ING Capital LLC and The Bank of Nova
Scotia have acted as Joint Lead Arrangers and Joint Bookrunners.
Bank of Montreal is acting as
Administrative Agent and Bank of Montreal, Canadian Imperial Bank of Commerce,
ING Capital LLC and The Bank of Nova
Scotia are acting as Co-Sustainability Structuring Agent.
Bank of Montreal, The Bank of
Nova Scotia, ING Capital LLC,
Canadian Imperial Bank of Commerce, Fédération des caisses
Desjardins du Québec, The Toronto-Dominion Bank, Bank of America
N.A., Canada Branch, Royal Bank of
Canada, Canadian Branch and Morgan
Stanley Bank N.A. acted as lenders.
The Term Loan agreement will be available for review under the
Company's profile on SEDAR+ (www.sedarplus.com).
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining
company with operations and projects in Argentina, Brazil, Chile, Portugal, Sweden and the
United States of America, primarily producing copper, zinc,
gold and nickel.
The information in this release is subject to the disclosure
requirements of Lundin Mining under the EU Market Abuse Regulation.
The information was submitted for publication, through the agency
of the contact persons set out below on July
27, 2023, at 17:00 Eastern
Time.
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained
herein is "forward-looking information" within the meaning of
applicable Canadian securities laws. All statements other than
statements of historical facts included in this document constitute
forward-looking information, including but not limited to
statements regarding the Company's plans, prospects and business
strategies; intentions with respect to the sustainability-linked
component of the Term Loan and the existing revolving credit
facility; the significant growth potential to the Company's
portfolio of assets and expected synergies and potential for cost
savings; the potential to unlock additional upside; expectations
regarding the world shifting to a lower carbon future; the
Company's expectations regarding liquidity; the anticipated
development of Josemaria and other growth projects; anticipated
cash costs and capital expenditures; expectations regarding 2023
production guidance; the Company's guidance on the timing and
amount of future production and its expectations regarding the
results of operations; expected costs; permitting requirements and
timelines; timing and possible outcome of pending litigation; the
results of any Preliminary Economic Assessment, Feasibility Study,
or Mineral Resource and Mineral Reserve estimations, life of mine
estimates, and mine and mine closure plans; anticipated market
prices of metals, currency exchange rates, and interest rates; the
development and implementation of the Company's Responsible Mining
Management System; the Company's ability to comply with contractual
and permitting or other regulatory requirements; anticipated
exploration and development activities at the Company's projects;
the Company's integration of acquisitions and any anticipated
benefits thereof, including the Caserones transaction; and
expectations for other economic, business, and/or competitive
factors. Words such as "believe", "expect", "anticipate",
"contemplate", "target", "plan", "goal", "aim", "intend",
"continue", "budget", "estimate", "may", "will", "can", "could",
"should", "schedule" and similar expressions identify
forward-looking statements.
Forward-looking information is necessarily based upon various
estimates and assumptions including, without limitation, the
expectations and beliefs of management, including that the Company
can achieve certain synergies, access financing, appropriate
equipment and sufficient labour; assumed and future price of
copper, nickel, zinc, gold and other metals; anticipated costs;
ability to achieve goals; the prompt and effective integration of
acquisitions; that the political environment in which the Company
operates will continue to support the development and operation of
mining projects; and assumptions related to the factors set forth
below. While these factors and assumptions are considered
reasonable by Lundin Mining as at the date of this document in
light of management's experience and perception of current
conditions and expected developments, these statements are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: the inability to establish
mutually satisfactory conditions for a sustainability-linked
component; global financial conditions, market volatility and
inflation, including pricing and availability of key supplies and
services; risks inherent in mining including but not limited to
risks to the environment, industrial accidents, catastrophic
equipment failures, unusual or unexpected geological formations or
unstable ground conditions, and natural phenomena such as
earthquakes, flooding or unusually severe weather; uninsurable
risks; project financing risks, liquidity risks and limited
financial resources; volatility and fluctuations in metal and
commodity demand and prices; delays or the inability to obtain,
retain or comply with permits; significant reliance on a single
asset; reputation risks related to negative publicity with respect
to the Company or the mining industry in general; health and safety
risks; risks relating to the development of the Josemaria Project;
inability to attract and retain highly skilled employees; risks
associated with climate change; compliance with environmental,
health and safety laws and regulations; unavailable or inaccessible
infrastructure, infrastructure failures, and risks related to
ageing infrastructure; risks inherent in and/or associated with
operating in foreign countries and emerging markets, including with
respect to foreign exchange and capital controls; economic,
political and social instability and mining regime changes in the
Company's operating jurisdictions, including but not limited to
those related to permitting and approvals, environmental and
tailings management, labour, trade relations, and transportation;
risks relating to indebtedness; the inability to effectively
compete in the industry; risks associated with acquisitions and
related integration efforts, including the ability to achieve
anticipated benefits, unanticipated difficulties or expenditures
relating to integration and diversion of management time on
integration; changing taxation regimes; risks related to mine
closure activities, reclamation obligations, environmental
liabilities and closed and historical sites; reliance on key
personnel and reporting and oversight systems, as well as third
parties and consultants in foreign jurisdictions; information
technology and cybersecurity risks; risks associated with the
estimation of Mineral Resources and Mineral Reserves and the
geology, grade and continuity of mineral deposits including but not
limited to models relating thereto; actual ore mined and/or metal
recoveries varying from Mineral Resource and Mineral Reserve
estimates, estimates of grade, tonnage, dilution, mine plans and
metallurgical and other characteristics; ore processing efficiency;
community and stakeholder opposition; financial projections,
including estimates of future expenditures and cash costs, and
estimates of future production may not be reliable; enforcing legal
rights in foreign jurisdictions; environmental and regulatory risks
associated with the structural stability of waste rock dumps or
tailings storage facilities; activist shareholders and proxy
solicitation matters; risks relating to dilution; regulatory
investigations, enforcement, sanctions and/or related or other
litigation; risks relating to payment of dividends; counterparty
and customer concentration risks; the estimation of asset carrying
values; risks associated with the use of derivatives; relationships
with employees and contractors, and the potential for and effects
of labour disputes or other unanticipated difficulties with or
shortages of labour or interruptions in production; conflicts of
interest; existence of a significant shareholder; exchange rate
fluctuations; challenges or defects in title; internal controls;
compliance with foreign laws; potential for the allegation of
fraud and corruption involving the Company, its
customers, suppliers or employees, or the allegation of improper or
discriminatory employment practices, or human rights violations;
the threat associated with outbreaks of viruses and infectious
diseases; risks relating to minor elements contained in concentrate
products; and other risks and uncertainties, including but not
limited to those described in the "Risk and Uncertainties" section
of the Company's Annual Information Form and the "Managing Risks"
section of the Company's MD&A for the year ended December 31, 2022, which are available on SEDAR
at www.sedar.com under the Company's profile.
All of the forward-looking statements made in this document
are qualified by these cautionary statements. Although the Company
has attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated, forecast or intended
and readers are cautioned that the foregoing list is not exhaustive
of all factors and assumptions which may have been used. Should one
or more of these risks and uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those described in forward-looking information.
Accordingly, there can be no assurance that forward-looking
information will prove to be accurate and forward-looking
information is not a guarantee of future performance. Readers are
advised not to place undue reliance on forward-looking information.
The forward-looking information contained herein speaks only as of
the date of this document. The Company disclaims any intention or
obligation to update or revise forward‐looking
information or to explain any material difference between such and
subsequent actual events, except as required by applicable
law.
SOURCE Lundin Mining Corporation