On Monday, July 29, Lundin Mining Corporation and BHP announced that they have entered into a definitive agreement with Filo Corp to jointly acquire 100% of the issued and outstanding common shares of Filo.

In this regard, Lundin Mining and BHP will form a 50/50 joint venture to own the Filo del Sol project and Lundin Mining's Josemaria project. BHP will pay Lundin Mining a cash consideration of US$690 million for Lundin Mining's contribution to the Josemaria project. The joint venture will create a long-term partnership between Lundin Mining and BHP to jointly develop an emerging copper district with world-class potential that could support a world-class mining complex.

Jack Lundin, President and CEO of Lundin Mining, commented, "This strategic transaction is the key to unlocking the enormous value that the Vicuña District represents. By partnering to acquire Filo del Sol, one of the world's largest undeveloped copper, gold and silver deposits, with its true size yet to be defined, we are very excited about the future of the company and our role in the development of this region. "Combined with our Josemaria project, which is in the development stage, we are now positioned to create a multi-generational mining district with significant synergies and cost savings at a scale that has the potential to become one of the largest of its kind in the world. Importantly, we gained a valuable partner in BHP and together we aim to generate long-term value by combining complementary skills and experience, fundamental to our near-term goal of becoming a world-class copper producer."

The full press release can be found here.