The mining and metals company Boliden acquires the mines Neves-Corvo in Portugal and Zinkgruvan in Sweden. The seller is Lundin Mining. The purchase price amounts to USD 1.3 billion, equivalent to SEK 14.3 billion, including contingent considerations of USD 150 million on a cash and debt free basis. This is stated in a press release.

The initial cash consideration will be financed through a bridge loan, which is expected to be refinanced through an equity issuance of approximately half of the bridge loan and the remaining amount through medium- and long-term debt financing, the company said. The issue is expected to be completed in the first half of 2025, either as a fully guaranteed rights issue or as a directed issue.

Closing of the transaction is expected by the middle of next year.

"The transaction, which has a strong industrial rationale and is a good strategic fit, complements Boliden's current operations with two well-invested mines. Following the transaction, the production of zinc and copper concentrates will increase from 35% to 70% of zinc smelter capacity and from 30% to 40% of copper smelter capacity," Boliden writes.

The acquisition is expected to be immediately accretive to Boliden's earnings per share upon completion.

"The estimated ebitda contribution from the Neves-Corvo and Zinkgruvan mines over the next five years is estimated at USD 300-350 million annually, assuming consensus prices and terms," it said.

The mines are Lundin Mining's oldest assets and were up for sale as the company looks to develop its copper projects in South America. The zinc mine produced 76,349 tons last year, while Neves-Corvo produced 108,812 tons and 33,823 tons of copper, according to Lundin Mining's website.