Lundin to buy Yamana Gold’s copper mine for $1.0b

TORONTO, Apr 15 (Reuters): Lundin Mining Corp said on Monday it would acquire a gold-copper mine of Yamana Gold Inc in Brazil for more than $1 billion as it looks to beef up its base metals portfolio.

US-listed shares of Yamana Gold were up 7.4 per cent at $2.75 before the bell.

The Chapada mine, in northwest of Brazil, began production in 2007 and is expected to produce about 54,500 tonnes of copper and 100,000 ounces of gold in 2019.

Lundin said the deal would immediately add to its earnings and operating cash flow per share, while boosting its annual copper production by over 25 per cent.

Yamana will receive $800 million in cash, and contingent payments totaling about $225 million, the companies said.