Lundin Mining Announces Closing of $350 million Term Loan in Connection with the Caserones Option Exercise
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NEWS RELEASE
Lundin Mining Announces Closing of $350 million Term Loan in Connection with the
Caserones Option Exercise
Vancouver, August 2nd, 2024 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or the
“Company”) is pleased to announce the closing of an increase to its existing term loan (“Term Loan”), maturing on July 27,
2027, in the principal amount of $350 million, in connection with the previously announced closing of an additional nineteen
percent (19%) interest in SCM Minera Lumina Copper Chile (“Lumina Copper”). See press release dated June 26, 2024 “Lundin
Mining Exercises Option to Increase Ownership in Caserones to 70% and Receives Commitments to Increase the Term Loan
by $350 Million”.
The Company has used the Term Loan to refinance the drawdown of the existing $1.75 billion revolving credit facility that
was used to fund the upfront cash consideration of $350 million for the additional acquisition of nineteen percent (19%) of
the issued and outstanding equity of Lumina Copper, which owns the Caserones copper-molybdenum mine in Chile.
The Term Loan bears interest on US dollar denominated drawn funds at an annual rate equal to the Term Secured Overnight
Financing Rate plus a credit spread adjustment plus an applicable margin of 1.60% to 2.65%, depending upon the Company’s
net leverage ratio. The Term Loan is unsecured, save and except for a charge over certain assets in the United States of
America, and has similar covenants to the Company’s existing $1.75 billion revolving credit facility.
BMO Capital Markets, ING Capital LLC and The Bank of Nova Scotia have acted as Joint Lead Arrangers and Joint
Bookrunners. Bank of Montreal is acting as Administrative Agent and Bank of Montreal, Canadian Imperial Bank of
Commerce, ING Capital LLC and The Bank of Nova Scotia are acting as Co-Sustainability Structuring Agent. Bank of Montreal,
The Bank of Nova Scotia, ING Capital LLC, Canadian Imperial Bank of Commerce, Fédération des Caisses Desjardins du
Québec, The Toronto-Dominion Bank, Bank of America N.A., Royal Bank of Canada, Export Development Canada, National
Bank of Canada, MUFG Bank Ltd, Canada Branch, and Citibank N.A., Canada Branch, acted as lenders.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations and projects in Argentina, Brazil, Chile,
Portugal, Sweden and the United States of America, primarily producing copper, zinc, gold and nickel.
The information in this release is subject to the disclosure requirements of Lundin Mining under the Swedish Financial
Instruments Trading Act. The information was submitted for publication, through the agency of the contact persons set out
below on August 2, 2024 at 14:30 Vancouver Time.
For further information, please contact:
Stephen Williams, Vice President, Investor Relations: +1 604 806 3074
Robert Eriksson, Investor Relations Sweden: +46 8 440 54 50
Cautionary Statement on Forward-Looking Information
Certain of the statements made and information contained herein is “forward -looking information” within the meaning of applicable Canadian securities laws. All
statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding
the Company’s plans, prospects and business strategies. Words such as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “goal”, “aim”, “intend”, “continue”,
“budget”, “estimate”, “may”, “will”, “can”, “could”, “should”, “schedule” and similar expressions identify forward -looking statements.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectatio ns and beliefs of management,
including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, nickel, zinc, gold and other metals;
anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue
to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered
reasonable by Lundin Mining as at the date of this document in light of management’s experience and perception of current conditions and expected developments,
these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Kn own and unknown factors could cause
actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information.
Such factors include, but are not limited to: global financial conditions, market volatility and inflation, including pricing and availability of key supplies and services; risks
inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failur es, unusual or unexpected geological
formations or unstable ground condi tions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; volatility and
fluctuations in metal and commodity demand and prices; significant reliance on assets in Chile; reputation risks related to negative publicity with respect to the Company
or the mining industry in general; delays or the inability to obtain, retain or comply with permits; risks relating to the de velopment of the Josemaria Project; health and
safety laws and regulations; risks associated w ith climate change; risks relating to indebtedness; economic, political and social instability and mining regime changes in
the Company’s operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation,
environmental and tailings management, labour, trade relations, and transportation; inability to attract and retain highly sk illed employees; risks inherent in and/or
associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and capital controls; project financing risks, liquidity
risks and limited financial resources; health and safety risks; compliance with environmental, unavailable or inaccessible infrastructure, infrastructure failures, and risks
related to ageing infrastructure; changing taxation regimes; the inability to effectively compete in the industry; risks asso ciated with acquisitions and related integration
efforts, including the ability to achieve ant icipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on
integration; risks related to mine closure activities, reclamation obligations, environmental liabilities and closed and hist orical sites; reliance on key personnel and
reporting and oversight systems, as well as third parties and consultants in foreign jurisdictions; information technology an d cybersecurity risks; risks associated with
the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto;
actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, ton nage, dilutio n, mine plans and
metallurgical and other characteristics; ore processing efficiency; community and stakeholder opposition; regulatory investig ations, enforcement, sanctions and/or
related or other litigation; financial projections, including estimates of future expenditures and cash costs, and estimates of future production may not be reliable;
enforcing legal rights in foreign jurisdictions; risks associated with the use of derivatives; risks relating to joint ventur es and operations; environmental and re gulatory
risks associated with the structural stability of waste rock dumps or tailings storage facilities; exchange rate fluctuations ; compliance with foreign laws; potential for the
allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices,
or human rights violations; risks relating to dilution; risks relating to payment of dividends; counterparty and customer con centration risks; activist sharehold ers and
proxy solicitation matters; estimation of asset carrying values; relationships with employees and contractors, and the potential for and effects of labour disputes or other
unanticipated difficulties with or shortages of labour or interruptions in production; conflicts of interest; existence of significant shareholders; challenges or defects in
title; internal controls; risks relating to minor elements contained in concentrate products; the threat associated with outb reaks of viruses and infectious diseases; and
other risks and uncertainties, including but not limited to those described in the "Managing Risks” section of the Company’s MD&A and the “Risks and Uncertainties”
section of the Company’s Annual Information Form for the year ended December 3 1, 2023, which are available on SEDAR+ at www.sedarplus.com under the Company’s
profile.