VANCOUVER — Mid-tier base metals producer Lundin Mining (TSX: LUN; US-OTC: LUNMF) has been hungry for copper over the past two years, and it’s hoping to have picked up a profitable red metal mine via the US$262-million deal for Freeport-McMoRan’s (TSX: FCX) stake in the high grade Timok discovery in eastern Serbia.
The companies have a history due to long standing partnerships in Europe and at the large scale Tenke copper operation in the Democratic Republic of Congo, where Freeport serves as majority operator. In fact, the transaction marks the second deal for the joint venture partners over the past two years, as Lundin picked up the Candelaria copper mine in Chile from Freeport for $674 million back in late 2014.
Under the purchase agreement, Lundin will acquire a 55% interest in the Upper zone of the Cukaru Peki deposit, as well as Freeport’s interest in all the mineral licenses comprising the 232 km2 Timok project. Cukaru Peki is essentially a high grade, copper-gold epithermal deposit overlying potentially large porphyry style mineralization.
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