Lundin Mining Announces Closing of Sale of Interest in Kokkola Cobalt Refinery
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NEWS RELEASE
Lundin Mining Announces Closing of Sale of Interest in Kokkola Cobalt Refinery
Toronto, December 2, 2019 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin
Mining” or the “Company”) is please d to announce that Freeport Cobalt, the Company’s joint venture with
Freeport-McMoRan Inc. has completed the sale of the cobalt refinery in Kokkola, Finland and related cobalt
cathode precursor business to Umicore for total cash consideration of approximately $200 million, including net
working capital of approximately $50 million at the time of close (the “Transaction”). Lundin Mining is entitled to
receive 30 percent of proceeds of the Transaction. The joint venture will retain Freeport Cobalt’s fine powders,
chemicals, catalyst, ceramics and pigments businesses.
Lundin Mining has received approximately $100 million in funds distributed by the joint venture, including the
attributable proceeds of the Transaction.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations in 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 December 2, 2019 at 02:00 Eastern Time.
For further information, please contact:
Mark Turner, Director, Business Valuations and Investor Relations: +1 416 342 5565
Brandon Throop, Manager, Investor Relations: +1 416 342 5583
Robert Eriksson, Investor Relations Sweden: +46 8 440 54 50
Cautionary Statement in 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 forwar d-looking information, including but not limited to statements
regarding the Company’s plans, prospects and business strategies; 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 results of any
Preliminary Economic Assessment, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimat es, and mine and mine closure plans;
anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation of the C ompany’s Responsible Mining
Management System; the Company’s ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development
activities at the Company’s projects; and the Company’s integration of acquisitions (such as the Chapada mine) and any antici pated benefits thereof. 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 expectations 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 suppo rt the development and operation of mining projects; and assumptions related to the factors set forth below. While these fact ors 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 uncertai nties and contingencies. Known and
unknown factors could cause actual results to differ materi ally 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: risks inherent in and/or associated with opera ting in foreign countries; uncertain
political and economic environments; community activism, shareholder activism and risks related to negative publicity with re spect to the Company or the mining
industry in general; changes in laws, regulations or policies including but not limited to those related to permitting and approvals, environmental and tailings
management, labour, trade relations, and transportation; delays or the inability to obtain necessary governmental approvals and/or permits; regulatory
investigations, enforcement, sanctions and/or related or other litigation; risks associated with business arrangements and partners over which the Company does not
have full control; risks associated with acquisitions and related integration efforts (including with respect to the Chapada mine), including the ability to achieve
anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration; competition; development or
mining results not being consistent with the Com pany’s expectations; estimates of future production and operations; operating, cash and all -in sustaining cost
estimates; allocation of resources and capital; litigation; uninsurable risks; volatility and fluctuations in metal and commodity prices; the estimation of asset carrying
values; funding requirements and availability of financing; indebtedness; foreign currency fluctuations; interest rate volati lity; changes in the Company’s share price,
and equity markets, in general; changing taxation regimes; co unterparty and credit risks; health and safety risks; risks related to the environmental impact of the
Company’s operations and products and management thereof; unavailable or inaccessible infrastructure and risks related to age ing infrastructure; 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; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; ore processing efficiency;
risks relating to attracting and retaining of highly skilled employees; ability to retain key personnel; the potential for and effects of labour disputes or other
unanticipated difficulties with or shortages of labour or interruptions in production; the price and availability of energy and key operating supplies or services; the
inherent uncertainty of exploration and development, and the potential for unexpected costs and expenses including, without limitation, for mine closure and
reclamation at current and historical operations; 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; mine plans, and life of mine estimates; the possibility that future exploration, development or mining results will not be consistent with expectations;
natural phenomena such as earthquakes, flooding, and unusually severe weather; potential for the allegation of fraud and corr uption involving the Company, its
customers, suppliers or employees, or the allegatio n of improper or discriminatory employment practices, or human rights violations; security at the Company’s
operations; breach or compromise of key information technology systems; materially increased or unanticipated reclamation obligations; risks related to mine closure
activities; risks related to closed and historical sites; title risk and the potential of undetected encumbrances; risks associated with the structural stability of waste rock
dumps or tailings storage facilities; and other risks and uncertainties, including but not limited to those described in the “Risk and Uncertainties” section of the Annual
Information Form for the year ended December 31, 2018 and the “Managing Risks” section of the Company’s MD&A for the year ended December 31, 2018, which are
available on SEDAR at www.sedar.com under the Company’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 of all factors and assumptions which may have been used. Should one or more of these risks and uncertainties mater ialize, 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 a nd subsequent
actual events, except as required by applicable law.