BHP in C$4.1bn. joint bid for copper developer Filo Corporation

BHP and Lundin Mining Corp. are to buy Toronto-listed copper exploration firm Filo Corporation for C$4.1bn in cash.BHP said in an announcement to the JSE on Tuesday that it would also buy half of Lundin Mining’s Josemaria project for $690m. Josemaria is located near Filo Corp’s Filo del Sol (FDS) project on the Argentina/Chile border. Their proximity supports the sharing of infrastructure between them. Filo Corp also owns other copper prospects throughout the the Vicuña district of Argentina and Chile.The projects would then be held in a joint venture which would be formed between BHP and Lundin Mining on a 50/50 basis.“This transaction aligns with BHP’s strategy to acquire attractive early-stage copper projects and enter into strategic partnerships with parties where complementary skills and experience can deliver long-term economic and social value,” said Mike Henry, CEO of BHP.In terms of the joint offer for Filo – for C$33/share, a 32.2% premium over its 30-day trading average – its shareholders can opt for cash, Lundin shares or a combination of Lundin shares and cash while BHP’s share of the purchase will be C$1.91bn in cash (US$1.38bn).The transaction is yet another example of mining company interest in acquiring future copper production. In May, BHP had a takeover proposal for Anglo American rejected. The takeover was primarily pointed at acquiring Anglo’s 700,000 tons/year copper production in South America.A feasibility study for the Josemaria project – described as “an advanced-stage copper project” – was completed in November 2020. An Environmental Social Impact Assessment was approved by the Mining Authority of San Juan, Argentina in April 2022.The Josemaria project features favourable topography for the placement of infrastructure for the district, with expansion potential, said BHP.The post BHP in C$4.1bn. joint bid for copper developer Filo Corporation appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com