Boliden to acquire mine and exploration rights in Finland
July 07 2014 - 7:30PM
Business Wire
Regulatory News:
Boliden (STO:BOL) (TSX:BLS) has entered into an agreement with
Australian Altona Mining to purchase the Kylylahti copper mine, the
exploration rights and copper/nickel deposits in the Outokumpu
field in eastern Finland. The consideration for the transaction
amounts to USD 95 million. The agreement is subject to approval by
the Finnish Competition and Consumer Authority and the approval of
the shareholders of Altona Mining Limited.
“We see several synergies in mining, metallurgy and exploration.
The exploration areas are similar to what we experience in Sweden
and have potential for additional discoveries. The acquisition will
also establish Boliden as a mining company in Finland, where we
already are a significant smelting company,” says Lennart Evrell,
President and CEO, Boliden.
The exploration areas acquired are located in proximity to
previous mines and copper and nickel deposits.
“Exploration efforts in the area have been limited since the
mid-1980s and the potentials below 400 m depth have not been
explored in any detail”, says Jan Mostr�m, President Boliden
Mines.
The Kylylahti mine, located 450 km north-east of Helsinki, has
110 employees and approximately 120 contractors. Copper accounts
for 80 per cent of the revenues, with gold, zinc and silver
accounting for the remainder. The mine opened in 2012 and has a
capacity of 650,000 tonnes of ore per year. The life of the mine is
calculated to 2021 based on current mineral reserves.
During the last published 12 months period, ending March 2014,
production was 9,000 tonnes of copper, 300 kg of gold, 2,200 tonnes
of zinc and 2,100 kg of silver in concentrate. The operating profit
during 2013 amounted to USD 18 million. The concentrate is supplied
to Boliden’s smelters Harjavalta and Kokkola for refining to
finished metals.
The consideration for the transaction will be USD 95 million for
the assets together with adjustments for working capital, net debt
and net capital expenditure during the settlement period. The
acquisition will be financed by existing loan facilities and the
plan is to conclude the transaction 1 October 2014.
Conference call today, 8 July at 09.30 (CET) for further
information
In the light of this acquisition, Boliden is holding a
conference call today, Tuesday 8 July, at 09.30 (CET) with
President and CEO Lennart Evrell, and CFO Mikael Staffas. The
presentation will be held in English and will also be available as
an audiocast on Boliden’s website, www.boliden.com.
In order to ensure that the connection to the conference call is
working properly, please ring in a few minutes before the
conference call begins to register. Telephone no:Sweden: +46 8 5199
9355UK: +44 20 3194 0550US: +1 8552 692 605
Presentation material will be available at www.boliden.com
before the conference begins.
For further information, please contact:Marcela
Sylvander, Group Communication, +46 733 244551Sophie Arnius,
Group IR, +46 705 908072
The information provided comprises information that Boliden is
obliged to present pursuant to the Swedish Securities Market Act
and/or the Swedish Financial Instruments Trading Act. The
information was released for publication on 8 July 2014, at 01:00
CET.
This information was brought to you by Cision
http://news.cision.com
Marcela Sylvander, +46 733 244551Group
CommunicationorSophie Arnius, +46 705 908072Group IR
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