Lundin Mining Acknowledges Announcement of Unsolicited Take-Over Bid by Equinox Minerals Limited
TORONTO, ONTARIO -- (Marketwire) -- 02/28/11 -- Lundin Mining Corporation ('Lundin Mining' or the 'Company') (TSX: LUN)(OMX: LUMI) acknowledges that Equinox Minerals Limited ('Equinox') has now issued a news release announcing that it will make an offer to acquire Lundin Mining for approximately C$4.8 billion in cash and shares of Equinox.
The announcement provides that once the offer is commenced that each Lundin Mining shareholder will be able to elect to receive consideration per Lundin Mining common share of either C$8.10 in cash or 1.2903 shares of Equinox plus $0.01 for each Lundin Mining common share, subject to a pro-ration based on a maximum cash consideration of approximately C$2.4 billion and maximum number of shares of Equinox issued of approximately 380 million.
The Lundin Mining Board of Directors is in the process of reviewing and evaluating the announcement with its financial and legal advisors and will communicate a recommendation to Lundin Mining shareholders as soon as possible. The Board of Directors recommends that shareholders defer making any decision until the Board of Directors has had an opportunity to make a recommendation as to the merits of the offer. Shareholders will be promptly notified of any recommendation by the Board of Directors through a news release and circular in accordance with applicable securities laws.
The Board of Directors will update shareholders from time to time on developments relating to the Equinox offer and the Company's proposed merger with Inmet Mining Corporation to form Symterra Corporation. The arrangement agreement between Lundin Mining and Inmet Mining Corporation will remain in effect unless terminated by either party in accordance with its terms.
About Lundin Mining
Lundin Mining is a diversified base metals mining company with operations in Portugal, Spain and Sweden, producing copper, nickel, lead and zinc. In addition, Lundin Mining holds a development project pipeline which includes an expansion project at its Neves-Corvo mine along with its equity stake in the world class Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo.
On Behalf of the Board,
Phil Wright, President and CEO
Forward Looking Statements
Certain of the statements made and information contained herein is 'forward-looking information' within the meaning of the Ontario Securities Act or 'forward-looking statements' within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, nickel, lead and zinc; that the Company can access financing, appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.
Contacts:
Lundin Mining Corporation
Sophia Shane
Investor Relations North America
+1-604-689-7842
Lundin Mining Corporation
John Miniotis
Senior Business Analyst
+1-416-342-5560
Lundin Mining Corporation
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50
