Filo Announces Mailing and Filing of Letters of Transmittal and Election Forms for BHP and Lundin Mining Acquisition

Filo Corp. (TSX: FIL) has announced the mailing and filing of letters of transmittal and election forms in connection with the acquisition of the company by BHP and Lundin Mining. The acquisition, valued at approximately C$4.1 billion, is set to create a strategic partnership between the three companies, with BHP and Lundin Mining forming a 50/50 joint venture to develop the Filo del Sol and Josemaria projects.

The acquisition, which was first announced in July 2024, involves BHP paying C$3.5 billion in cash, while Lundin Mining contributes its Josemaria project, valued at C$690 million. The transaction is subject to customary closing conditions, including regulatory approvals and the approval of the Ontario Superior Court of Justice.

The Filo del Sol project, located on the border of Argentina and Chile, is a large-scale copper-gold-silver deposit with significant potential. A prefeasibility study on the project outlined a 13-year mine operation with average annual production of 66,000 tonnes of copper, 168,000 oz. of gold, and 9.26 million oz. of silver. The project has an after-tax net present value (at 8% discount) of $1.31 billion and an internal rate of return of 20%.

The Josemaria project, located approximately 9 km east of the border with Chile, is also a large-scale copper-gold-silver deposit. A technical report on the project outlined a 19-year mine operation with average annual production of 136,000 tonnes of copper, 231,000 oz. of gold, and 1.16 million oz. of silver. The project has an estimated NPV (at 8% discount) of $1.53 billion, with an IRR of 15.4%.

The joint venture between BHP and Lundin Mining is expected to generate significant synergies and cost savings by combining the two projects. By optimizing infrastructure, reducing duplication of services, and leveraging shared expertise, the joint venture can create a globally ranked mining complex with world-class potential.

The acquisition aligns with BHP's long-term strategic objective of expanding its copper portfolio and forming strategic partnerships. Lundin Mining, on the other hand, seeks to create a multi-generational mining district with significant synergies and cost savings. The joint venture will develop an emerging copper district with world-class potential, supporting a globally ranked mining complex.

Upon completion of the acquisition, Filo shareholders are expected to own approximately 11% of Lundin Mining on a fully diluted basis. The transaction is expected to close in the first quarter of 2025, subject to the satisfaction of customary closing conditions.



The acquisition of Filo Corp. by BHP and Lundin Mining is a significant development in the mining sector, with the potential to create a globally ranked mining complex with world-class potential. The strategic partnership between the three companies is expected to generate significant synergies and cost savings, driving long-term growth and value creation for shareholders.