TORONTO, CANADA--(Marketwire - March 29, 2011) - Lundin Mining Corporation (TSX:LUN)(OMX:LUMI) ("Lundin Mining") and Inmet Mining Corporation (News - Market indicators) ("Inmet") jointly announced today that they have terminated the arrangement agreement dated January 12, 2011 between them in accordance with its terms.
As a result, the formerly announced Special Meetings of Shareholders of both Inmet and Lundin Mining, scheduled for April 4, 2011, are cancelled. The parties have agreed that Inmet's right to a break fee of $120 million, in accordance with the arrangement agreement, will be preserved in connection with the unsolicited offer of Equinox Minerals Limited to acquire Lundin Mining.
In a joint statement, Mr. Phil Wright, President and CEO of Lundin Mining, and Mr. Jochen Tilk, President and CEO of Inmet, said "Inmet and Lundin believe that this merger would have created a leading copper producer with benefits for both companies' shareholders.
"We have however agreed to mutually terminate the agreement on the grounds that we could not reach a position that we thought would be supported by both companies' shareholders.
"We continue to think very highly of each other's assets and wish each other well."
Inmet is a Canadian-based global mining company that produces copper, zinc and gold. We have interests in three mining operations: Cayeli (Turkey), Las Cruces (Spain) and Pyhasalmi (Finland). We also have a 100 percent interest in Cobre Panama, a development project in Panama.
This press release is also available at www.inmetmining.com.
Lundin Mining Corporation is a diversified base metals mining company with operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a development project pipeline which includes an expansion project at its Neves-Corvo mine along with its equity stake in the world class Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo.