BHP and Lundin Mining Agree to Jointly Acquire Filo Corp., Establish Copper Joint Venture in Vicuña DistrictBHP and Lundin Mining Corporation have agreed to jointly acquire 100% of the Toronto-listed Filo Corp., which wholly owns the Filo del Sol copper project in the Vicuña district, spanning Argentina and Chile. The companies will subsequently form a 50/50 joint venture, combining the Filo del Sol project with Lundin Mining’s Josemaria copper project in the same region.
The total consideration for acquiring Filo Corp. is approximately C$4.1 billion, equivalent to C$33.00 per Filo share. This price represents a 32.2% premium over the company’s 30-day volume-weighted average price prior to speculation of the transaction and a 12.2% premium over its last closing price. BHP will pay approximately C$1.9 billion (US$1.38 billion) in cash, while Lundin Mining’s contribution will include approximately C$859 million in cash and C$1.29 billion in Lundin Mining shares.
Additionally, BHP has agreed to acquire a 50% stake in Lundin’s Josemaria project for around US$690 million in cash, subject to adjustments. Following completion of these transactions, both BHP and Lundin Mining will each own 50% of the combined joint venture, encompassing both the Filo del Sol and Josemaria projects.
Mike Henry, CEO of BHP, stated the deal aligns with BHP’s strategic goal of securing early-stage copper assets and forming partnerships with experienced mining firms. He emphasized that consolidating the two projects would allow for shared infrastructure, potential cost efficiencies, and phased development options.
Filo Corp.’s board has unanimously recommended shareholder approval of the acquisition, with approximately 35% of existing shareholders—including directors and senior officers—already committing their support.
In conjunction with the acquisition, BHP and Lundin Mining have agreed to provide interim financing of C$115 million to Filo Corp. through a share placement at C$33.00 per share.
The proposed joint venture and acquisition remain subject to regulatory and shareholder approvals.
