Lundin Mining Announces Closing of $800 Million Term Loan with Additional $400 Million Accordion Available
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NEWS RELEASE
Lundin Mining Announces Closing of $800 Million Term Loan with Additional
$400 Million Accordion Available
Toronto, July 27, 2023 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or
the “Company”) is pleased to announce the closing of a three-year term loan (“Term Loan”) in a principal amount
of $800 million, with an additional $400 million accordion becoming available upon receipt of additional binding
commitments and closing of up to an additional nineteen (19%) interest in SCM Minera Lumina Copper Chile
(“Lumina Copper”) and satisfaction of relevant conditions precedent.
The Company has used the Term Loan to refinance the drawdown under the existing $1.75 billion revolving credit
facility used to fund the upfront cash consideration of $800 million for the acquisition of fifty-one percent (51%) 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 Company is working with the Co-Sustainability Structuring Agents to
establish a sustainability -linked component to the Term Loan and the existing revolv ing credit facility. 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, F édération des
caisses Desjardins du Québec, The Toronto-Dominion Bank, Bank of America N.A., Canada Branch, Royal Bank of
Canada, Canadian Branch and Morgan Stanley Bank N.A. acted as lenders.
The Term Loan agreement will be available for review under the Company’s profile on SEDAR +
(www.sedarplus.com).
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 EU Market
Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set
out below on July 27, 2023, at 17:00 Eastern Time.
For further information, please contact:
Mark Turner, Vice President, Business Valuations and Investor Relations: +1 416 342 5565
Irina Kuznetsova, Manager, Investor Relations: +1 416 342 5583
Robert Eriksson, Investor Relations Sweden: +46 8 440 54 50
Cautionary Statement on Forward-Looking Information
Certain of the statements made and in formation 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; intentions with respect to the sustainability -linked component of the Term
Loan and the existing revolving credit facility; the significant growth potential to the Company’s portfolio of assets and expected synergies and potential for
cost savings; the potential to unlock additional upside; expectations regarding the world shifting to a lower carbon future; the Company’s expectations
regarding liquidity; the anticipa ted development of Josemaria and other growth projects; anticipated cash costs and capital expenditures; expectations
regarding 2023 production guidance; the Company’s guidance on the timing and amount of future production and its expectations regarding the results of
operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the res ults of any Preliminary
Economic Assessment, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, l ife of mine estimates, and mine and mine closure plans;
anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation of the Company’s Responsible Mining
Management System; the Company’s ability to com ply with contractual and permitting or other regulatory requirements; anticipated exploration and
development activities at the Company’s projects; the Company’s integration of acquisitions and any anticipated benefits ther eof, including the Caserones
transaction; and expectations for other economic, business, and/or competitive factors. Words such as “believe”, “expect”, “antic ipate”, “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 t hat the Company can achieve certain synergies, 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 effe ctive 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 ar e 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 inheren tly subject to significant
business, economic and competitive uncertainties and contingencies. Known 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 factor s include, but are
not limited to: the inability to establish mutually satisfactory conditions for a sustainability -linked component; global financial conditions, market volatility
and inflation, including pricing and availability of key supplies and servi ces; risks inherent in mining including but not limited to risks to the environment,
industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena
such as earthquakes, flooding or unusually severe weather; uninsurable risks; project financing risks, liquidity risks and limited financial resources; volatility
and fluctuations in metal and commodity demand and prices; delays or the inability to obtain, retain or comply with permits; significant reliance on a single
asset; reputation risks related to negative publicity with respect to the Company or the mining industry in general; health a nd safety risks; risks relating to
the development of the Josemaria Project; inabilit y to attract and retain highly skilled employees; risks associated with climate change; compliance with
environmental, health and safety laws and regulations; unavailable or inaccessible infrastructure, infrastructure failures, a nd risks related to ageing
infrastructure; risks inherent in and/or associated with operating in foreign countries and emerging markets, including with respect to foreign exchange and
capital controls; economic, political and social instability and mining regime changes in the Compa ny’s operating jurisdictions, including but not limited to
those related to permitting and approvals, environmental and tailings management, labour, trade relations, and transportation ; risks relating to
indebtedness; the inability to effectively compete i n the industry; risks associated with acquisitions and related integration efforts, including the ability to
achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration; changing
taxation regimes; risks related to mine closure activities, reclamation obligations, environmental liabilities and closed and historical sites; reliance on key
personnel and reporting and oversight systems, as well as third parties and consultants in foreign jurisdictions; information technology and cybersecurity
risks; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity o f 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, tonnage, dilution, mine plans and metallurgical and other characteristics; ore processing efficiency; community and stakeholder opposition;
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; environmental and regulatory risks associated with the structural stability of waste rock dumps or tailings storage facilities;
activist shareholders and proxy solicitation matters; risks relating to dilution; regulatory investigations, enforcement, san ctions and/or related or other
litigation; risks relating to payment of dividends; counterparty and customer concentration risks; the estimation of asset carrying values; risks associ ated
with the use of derivatives; relationships with employees and contractors, and the potential for and effects of labour disput es or other unanticipated
difficulties with or shortages of labour or interruptions in production; conflicts of interest; existence of a significant shareholder; exchange rate fluctuations;
challenges or defects in title; internal controls; 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; the threat associated
with outbreaks of viruses and infectious diseases; risks relating to minor elements contained in concentrate products; and other ri sks and uncertainties,
including but not limited to those described in the “Risk and Uncertainties” section of the Company’s Annual Information Form and the “Managing Risks”
section of the Company’s MD&A for the year ended December 31, 2022, which are available on SEDAR at www.sedar.com under the C ompany’s profile.
All of the forward-looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to identify
important factors that could cause actual results to differ materially from those contained in forward -looking information, there may be other factors that
cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foregoing list is not exhaustive o f all factors and
assumptions which may have been used. 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 information. Accordingly, there can be no assurance that forward -looking
information will prove to be accurate and forward -looking information is not a guarantee of future performance. Readers are advised not to place undue
reliance on forward -looking information. The forward -looking information contained herein speaks only as of the date of this document. The Company
disclaims any intention or obligation to update or revise forward ‐looking information or to explain any material difference between such and subsequent
actual events, except as required by applicable law.