TORONTO, Dec 5 (Reuters) - Lundin Mining said on Friday it had agreed to sell its Aljustrel zinc mine in Portugal to Portuguese holding company MTO for an undisclosed sum.
Lundin, which is the subject of a friendly all-stock bid by fellow Canadian base metals miner HudBay Minerals, suspended operations at the mine in November due to falling zinc prices. It said in January it was considering options for the mine.
The company said it has reached a nonbinding agreement to sell its subsidiary Pirites Alentejanas, which owns the Aljustrel mine, to MTO. The deal is subject to final approval of each company's boards.
Lundin did not reveal financial terms of the deal, but said it does not consider it to be a 'material transaction' in the context of the company's overall business operations.
Aljustrel was re-opened this year after being on care and maintenance for more than a decade.
It was expected to produce 80,000 tonnes of contained metal in concentrate per year.
(Reporting by Cameron French; editing by Peter Galloway) Keywords: LUNDIN/SALE (cameron.french@thomsonreuters.com; 416-941-8199: Reuters Messaging: cameron.french.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Lundin, which is the subject of a friendly all-stock bid by fellow Canadian base metals miner HudBay Minerals, suspended operations at the mine in November due to falling zinc prices. It said in January it was considering options for the mine.
The company said it has reached a nonbinding agreement to sell its subsidiary Pirites Alentejanas, which owns the Aljustrel mine, to MTO. The deal is subject to final approval of each company's boards.
Lundin did not reveal financial terms of the deal, but said it does not consider it to be a 'material transaction' in the context of the company's overall business operations.
Aljustrel was re-opened this year after being on care and maintenance for more than a decade.
It was expected to produce 80,000 tonnes of contained metal in concentrate per year.
(Reporting by Cameron French; editing by Peter Galloway) Keywords: LUNDIN/SALE (cameron.french@thomsonreuters.com; 416-941-8199: Reuters Messaging: cameron.french.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.