TORONTO, ONTARIO–(Marketwired - Oct. 20, 2016) - Lundin Mining Corporation (TSX:LUN)(OMX:LUMI) (“Lundin Mining” or the “Company”) announces that it has executed an amending agreement to its US$350 million revolving credit facility (the “Facility”) that reduces the costs of borrowing and extends the term to June 2020, from October 2017. The amending agreement contains additional revisions, including amending certain mandatory prepayment clauses and provides for an increase in the leverage ratio for four quarters following a significant acquisition.
Ms. Marie Inkster, Senior Vice President and Chief Financial Officer, commented, “We are grateful for the ongoing support of our lenders. This low-cost facility, combined with our favourable net debt position and cash flow from operations, offers Lundin Mining significant financial flexibility to pursue opportunities in the future.”
The Facility remains undrawn, other than a letter of credit issued in the amount of SEK 162 million ($18.8 million), and bears interest on US dollar denominated drawn funds at rates of LIBOR+2.5% to LIBOR+3.5%, depending upon the Company’s leverage ratio.
Scotiabank and ING Capital have acted as Lead Arrangers. The Bank of Nova Scotia continues as the Administrative Agent, ING Capital LLC as the Syndication Agent, and Bank of Montreal as the Documentation Agent, in the syndicate along with Export Development Canada, Bank of America, N.A., Société Générale and Skandinaviska Enskilda Banken AB.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations in Chile, the USA, Portugal, and Sweden, primarily producing copper, nickel and zinc. In addition, Lundin Mining holds an indirect 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo and in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.
On Behalf of the Board,
Paul Conibear, President and CEO
The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation and the Swedish Securities Market Act. This information was publicly communicated on October 20, 2016 at 5:00 p.m. Eastern Time.