Lundin Mining Company (fkaLMC)

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EuroZinc and Lundin Mining to merge in stock deal
Monday August 21, 3:26 am ET


NEW YORK (Reuters) - EuroZinc Mining Corp. (TSX:EZM.TO - News) and Lundin Mining Corp. (TSX:LUN.TO - News) on Monday agreed to merge in a stock deal that will create a copper and zinc producer with a market capitalization of about $3 billion (C$3.3 billion).


Under terms of the deal, which will be executed through a plan of arrangement, all EuroZinc common shares will be automatically exchanged at a ratio of 0.0952 Lundin Mining common shares for each EuroZinc common share.

Lundin shareholders will continue to hold their existing common shares, the companies said.

Existing EuroZinc shareholders will own about 56.9 percent and Lundin holders will own about 43.1 percent of the combined company, which will be called Lundin Mining Corp.

The deal is conditional upon EuroZinc and Lundin shareholders approving the deal by 66.7 percent and 50.1 percent respectively, as well as other approvals.

Both sides agreed to pay a break fee to the other party of $40 million under certain circumstances and each company has granted the other a right to match a competing offer.

Lundin family interests, who hold about 19.9 percent of Lundin Mining, and Resource Capital Funds, which owns about 9.9 percent of EuroZinc, support of the deal, the companies said.

Colin Benner, who is chief executive officer of EuroZinc, will become vice chairman and CEO of the combined company and remain based in Vancouver. Karl-Axel Waplan, CEO of Lundin, will become president and chief operating officer of the combined company and remain based in Stockholm.

Both EuroZinc and Lundin Mining will be equally represented on the board, the companies said.

http://biz.yahoo.com/rb/060821/minerals_eurozinc.html?.v=1