Lundin Mining’s
offer for Rio Narcea
securities expires
August
22, 2007 (TSX: LUN; OMX: LUMI, AMEX: LMC) Lundin Mining Corporation (“Lundin
Mining” or the “Company”) is pleased to announce that as of
August 20, 2007, the final day of its amended offer to acquire all of the
shares and warrants of Rio Narcea Gold Mines, Ltd.
(“Rio Narcea”), 158,018,283 shares of Rio
Narcea, representing approximately 93.1% of the Rio Narcea shares outstanding, had been tendered to Lundin Mining’s amended offer, announced on July 17,
2007. In addition, 20,099,020 share purchase warrants had been deposited
to the amended offer. In combination, the shares and warrants tendered
under the offer total approximately 92.9% of the fully diluted shares
outstanding. Under the terms of the amended offer, Rio Narcea
shareholders and warrant holders will receive Cdn$5.50 for each share and Cdn $1.04 for each warrant tendered to the bid.
The Company will now undertake a compulsory
acquisition transaction under the Canada Business Corporations Act to
take up the balance of the shares. Following the compulsory acquisition, the
Rio Narcea shares will be delisted
from the Toronto Stock Exchange and the American Stock Exchange.
The acquisition of Rio Narcea
adds the Aguablanca copper-nickel mine to Lundin Mining’s assets which will be consolidated for
the third quarter of 2007. The planned sale of Rio Narcea’s
Tasiast gold mine for $225 million was completed on
August 2, 2007.
About Lundin Mining
Lundin Mining
is a rapidly growing mining and exploration company engaged in the extraction,
development, acquisition and discovery of base metal deposits internationally.
The company currently owns four operating mines: Neves-Corvo
in Portugal, the Zinkgruvan and Storliden mines in
Sweden, and the Galmoy mine in Ireland. A fifth mine under
development, the Aljustrel mine in Portugal, will
be brought into production in the third quarter of 2007. In addition, the
Company holds an extensive exploration portfolio as well as interests in
international ventures and development projects including the world class Ozernoe zinc project in Russia and the Tenke
Fungurume copper/cobalt project in the DRC.
Forward Looking Statement
Certain
of the statements made and information contained herein is “forward-
looking information” within the meaning of the Ontario Securities Act or
“forward-looking statements” within the meaning of Section 21E of
the Securities Exchange Act of 1934 of the United States. Forward-looking
statements are subject to a variety of risks and uncertainties which could
cause actual events or results to differ from those reflected in the
forward-looking statements, including, without limitation, risks and
uncertainties relating to foreign currency fluctuations; risks inherent in
mining including environmental hazards, industrial accidents, unusual or
unexpected geological formations, ground control problems and flooding; risks
associated with the estimation of mineral resources and reserves and the
geology, grade and continuity of mineral deposits; the possibility that future
exploration, development or mining results will not be consistent with the
companies’ expectations; the potential for and effects of labour disputes
or other unanticipated difficulties with or shortages of labour or
interruptions in production; actual ore mined varying from estimates of grade,
tonnage, dilution and metallurgical and other characteristics; the inherent
uncertainty of production and cost estimates and the potential for unexpected
costs and expenses, commodity price fluctuations; uncertain political and
economic environments; changes in laws or policies, foreign taxation, delays or
the inability to obtain necessary governmental permits; and other risks and
uncertainties, including those described under Risk Factors Relating to the
Company’s Business in the Company’s Annual Information Form and in
each management discussion and analysis. Forward-looking information is in
addition based on various assumptions including, without limitation, the
expectations and beliefs of management, the assumed long term price of copper
and zinc; that the companies can access financing, appropriate equipment and
sufficient labour and that the political environment where the Companies
operate will continue to support the development and operation of mining
projects. Should one or more of these risks and uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those described in forward-looking statements. Accordingly,
readers are advised not to place undue reliance on forward-looking statements.
For further information, please contact:
Catarina Ihre, Manager, Investor Relations:
+46-706-07-92-63
Sophia Shane, Investor Relations, North America: +1-604-689-7842
