05:24 AM EDT, 07/30/2024 (MT Newswires) -- BHP Group ( BHP ) and Lundin Mining said late Monday they have agreed to jointly acquire Filo Corp. for about 4.1 billion Canadian dollars ($2.96 billion), or CA$33 per Filo share.

The price tag represents a premium of about 32% to Filo's 30-day volume-weighted average price on the TSX ending July 11.

BHP's total cash payment for the proposed transaction will likely be about $2.1 billion. Lundin Mining's share in the acquisition will be roughly CA$859 million in cash and CA$1.29 billion in shares.

Filo owns 100% of the Filo del Sol copper project. On closing, the duo will each own 50% of Filo and the FDS project.

The deal aligns with BHP's strategy to acquire "attractive early-stage copper projects and enter into strategic partnerships with parties where complementary skills and experience can deliver long-term economic and social value."

The Filo Corp. board "unanimously" recommended that shareholders vote in favor of the deal.

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