Equinox Launches C$4.8Bln Bid for Canada's Lundin Mining

March 1, 2011 - PRLog -- Equinox Minerals Limited said Monday it planned to make a C$4.8 billion acquisition bid for Canada's Lundin Mining Corporation to push forward its ambition of becoming one of the world's largest copper mining groups.

Equinox said it would seek to deliver a 23 percent compound annual growth rate in production over the next six years if it successfully merges with Lundin Mining. The mining firm said this would result in forecast production of 500,000 tonnes of copper per annum by 2016.

The company's bid for Lundin Mining consists of cash and shares, and its cash consideration is being financed through a $3.2 billion dollar bridge facility led by Goldman Sachs and Credit Suisse. Equinox said its offer marked a 26 percent premium over Lundin's shares on February 25.

The deal comes as a number of global miners are seeking to consolidate their operations.

Toronto-based Lundin is a diversified base metals mining company with operations in Portugal, Spain and Sweden which produce copper, nickel, lead and zinc. The company also has operations in the Democratic Republic of Congo.

Under the deal's terms, each Lundin shareholder would stand to receive either C$8.10 in cash or 1.2903 shares of Equinox, plus $0.01 for each Lundin Mining common share subject to certain conditions.

Equinox, which also runs mining oprations around the globe, operates the Lumwana mine in Zambia, and is the process of constructing the Jabal Sayid project in Saudi Arabia. It is dual-listed in Canada and Australia.

Author: Mike King, analyst.

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