MS-Lundin Mining Corp. Eagle mine sale completes transition to LatAm copper growth play-20251219

What's new?: Lundin Mining has announced the sale of the Eagle mine andHumboldt mill to Talon Metals (TSX: TLO, not covered) to create a pure playAmerican nickel-copper company. In return, Lundin will receive 275.2 million Talonshares for a consideration of ~US$84mn, based on the five-day VWAP of Talonshares. Following completion, Lundin will have increased its Talon holding to 19.99%and will have two board seats being Jack Lundin and Juan Andrés Morel. DarbyStacey, the current Managing Director of Eagle will be appointed as CEO andDirector of Talon. In addition, Lundin Mining will receive ore delivery payments ofUS$1.00/t of non-Eagle ore processed through the Humboldt mill until theaggregate ore delivery payments equal the capped amount of US$20mn(Production Payment Agreement). Among other provisions, Lundin Mining will enterinto a Lock-Up agreement for a period of up to 24 months. The transaction isexpected to close in early January 2026, subject to receipt of the approval of theTSX and the satisfaction of other customary closing conditions. (See our previousnote on Lundin Mining's option agreement for the Boulderdash exploration propertieswith Talon here)