Lundin buys Yamana's Chapada copper, gold mine for up to $1.03 bn

Lundin Mining has signed an agreement with Yamana Gold to buy the open-pit copper and gold Chapada mine in the Brazilian Midwest state of Goiás for up to $1.03 billion, the miners said on Monday April 15.

Cash payments will total $800 million, with an additional $125 million in effect over five years depending on gold prices, as well as $100 million more whether the mine chooses to build a pyrite circuit to improve operations or not, the companies added.
Yamana will retain 2% of net smelter return royalties on future gold output from the Suruca deposit, a gold-only ore body.
The payments are subject to “customary adjustments” involved in acquisitions like this, Lundin said.

Chapada has capacity to treat around 22 million tonnes per year of ore. In 2018, the mine produced 129 million...

Published

Renato Rostás

April 15, 2019

15:35 GMT

São Paulo