VANCOUVER - LUNDIN MINING and TENKE MINING have entered into a definitive agreement to combine the two companies to create an intermediate-size base metals company with a global reach. Each Tenke share can be exchanged for 1.73 shares of Lundin. Existing Lundin and Tenke shareholders will own approximately 73% and 27% respectively, of Lundin Mining when the deal is completed, hopefully by the end of June 2007.
Tenke holds a 25% interest in the Tenke Fungurume copper-cobalt deposits under development in the Democratic Republic of Congo as well as copper-gold exploration properties in South America. Pursuant to the arrangement, Tenke will convey its South American assets and cash in the amount of US$5 million to a newly incorporated, wholly owned subsidiary. The shares of the newly incorporated company will be distributed to Tenke shareholders. Application will be made to list the common shares of the newly incorporated company on the appropriate exchange.
Further details are available at either www.Tenke.com or www.LundinMining.com.