Lundin to use revolver for Chapada mine buy; Yamana to repay revolver

By Sarah Lizee

Olympia, Wash., April 15 – Lundin Mining Corp. plans to use a portion of its $550 million revolving credit facility to help finance the purchase of Yamana Gold Inc.’s 100% ownership stake in Mineracao Maracs Industria e Comercio S/A for a total consideration over $1 billion, according to a press release.

Mineracao Maracs owns the Chapada copper-gold mine located in Brazil.

Lundin’s current cash balance will also be used for the transaction.

The upfront cash consideration provides for significant deleveraging benefits for Yamana, highlighted by a decline in current net debt to EBITDA to 1.5x from the year-end 2018 value of 2.5x with an opportunity for further reductions based on the contingent payments, according to a Yamana press release.

Yamana said it is prioritizing the repayment of its outstanding revolver and then the repayment of near- and medium-term fixed term debt maturities.

Completion of the acquisition is expected to occur early in the third quarter of 2019 and is subject to typical closing conditions

Lundin is a Toronto-based mining company primarily producing copper, nickel and zinc.

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