MERGER: Antofagasta offers hefty premium for Duluth Metals

TORONTO – Duluth Metals has entered into a binding agreement with Antofagasta plc that will see the British miner pay a premium close to three times the price per share for Duluth. Antofagasta will pay C$0.45 per share in cash for all of the outstanding shares of Duluth.

Kelly Osborne, president and CEO of Duluth commented, "We are pleased to reach an agreement with our partner Antofagasta and enter into this acquisition transaction.  During a difficult period for the mining industry, Duluth has been able to negotiate a significant premium to the current market share price."

The directors and officers of Duluth have signed a lock-up agreement with Antofagasta. Wallbridge Mining, owner of 10.7% of Duluth shares, had agreed to sell half of them or approximately 5.1 million shares to Antofagasta.

Duluth announced last month that it and Antofagasta were working together to evaluate Duluth's Twin Metals copper-nickel-platinum group project in Minnesota. When the preliminary economic assessment was released earlier this year, the project had a price tag of $3 billion.

Following the announcement of the deal with Antofagasta, Duluth canceled its proposed private placement.

Further information about the Twin Metals project is available at DuluthMetals.com.