11:05 AM EST, 12/09/2024 (MT Newswires) -- (Adds analyst comment; updates shares.)

Lundin Mining ( LUNMF ) on Monday said it agreed to sell its Neves-Corvo operation in Portugal and Zinkgruvan operation in Sweden to Boliden for up to US$1.52 billion.

Lundin will receive US$1.37 billion at closing and up to US$150 million in contingent payments upon satisfaction of certain conditions.

The company will use the proceeds to strengthen its balance sheet and support growth plans in the Vicuna District in South America.

Up to US$100 million in contingent payments at Neves-Corvo are tied to underlying copper and zinc prices and up to US$50 million in contingent payments at Zinkgruvan is tied to underlying zinc prices.

The deal is scheduled to close in mid-2025, subject to the completion of customary conditions and regulatory approvals.

National Bank of Canada maintained its outperform rating and $18.50 price target on the company's shares following the news.

The bank said its Outperform rating considers the company's stable operating outlook into the fourth quarter, synergy opportunities between the Candelaria/Caserones/Josemaria/Filo mines, and a discounted valuation.

Lundin shares were last seen up $0.36 to $14.10 on the Toronto Stock Exchange.