Lundin Mining Enters into Agreement for the Sale of Aljustrel Mine in Portugaladmin
Lundin Mining Corporation reports that an agreement has been reached for the sale of its subsidiary Pirites Alentejanas SA owner of the Aljustrel Mine in Portugal to MTO SGPS, SA.
Closure of the agreement is expected by the end of January 2009, subject to the completion of certain contractual obligations and a favorable decision from the Portuguese Securities Market Commission to withdraw PA from public status.
The agreement involves the recapitalization of PA prior to the sale of the Company’s shares in PA to MTO, along with certain loans to PA by an associated company, for nominal consideration. The Company does not consider this to be a material transaction in the context of its overall business operations. Following closure, the Company will have no further responsibility for the Aljustrel mine.
The Portuguese Government has indicated its support for the sale.