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lundin mining Corporate Office 150 King Street West , Suite 2200 P.O. Box 38 , Toronto , ON M5H 1J9 Phone : +1 416 342 5560 Fax : +1 416 348 0303 lundinmining.com NEWS RELEASE Lundin Mining to Acquire Josemaria Resources , Meaningfully Increasing Copper and Gold Growth Profile Toronto , December 20 , 2021 ( TSX : LUN ; Nasdaq Stockholm : LUMI ) Lundin Mining Corporation ( " Lundin Mining " or the " Company " ) is pleased to announce it has entered into a definitive agreement ( the " Arrangement Agreement " ) with Josemaria Resources Inc. ( " Josemaria Resources " ) to acquire all of the issued and outstanding shares of Josemaria Resources through a plan of arrangement ( the " Transaction " ) for an implied equity value of approximately C $ 625 million ( US $ 485 million ) . Lundin Mining will acquire 100 % of the Josemaria copper - gold project located in the San Juan Province of Argentina ( the " Josemaria project " , " Josemaria " or the " project " ) . The world - class Josemaria project is a unique opportunity at an advanced stage with a clear path to production . With Josemaria , Lundin Mining positions itself as a major copper producer with a diversified portfolio of high - quality , long - life base metal assets . Under the terms of the Transaction , Josemaria Resources shareholders may elect to receive in exchange for each Josemaria Resources common share ( a " Josemaria Resources Share " ) , 0.1487 of a common share of Lundin Mining ( each whole share , a " Lundin Mining Share " ) or C $ 1.60 cash or any combination thereof issuable to all Josemaria Resources shareholders ( collectively , the " Consideration " ) . The Consideration will be subject to a total maximum cash consideration of approximately C $ 183 million and a total maximum share consideration of approximately 39.7 million Lundin Mining Shares , equating to 30 % of the Transaction Consideration payable in cash and 70 % of the Transaction Consideration payable in Lundin Mining Shares , respectively . The Consideration implies a purchase price of C $ 1.60 per Josemaria Resources Share , representing a 29 % premium to Josemaria Resources ' 10 - day volume weighted average price on the Toronto Stock Exchange ( " TSX " ) for the period ended December 17 , 2021. Any cash payments on Josemaria Resources Shares traded on Nasdaq Stockholm will be paid in Swedish kronor in accordance with Euroclear Sweden principles . Lundin Mining and Josemaria Resources will host a joint conference call and webcast at 8:00 am ET , 14:00 CET on Monday , December 20 , 2021 to discuss the Transaction . Call details are outlined at the end of this news release . Acquisition Highlights and Strategic Rationale Aligned with Lundin Mining's Strategic Goals - Acquisition of the world - class Josemaria project delivers large - scale copper - gold growth . Delivering on the Company's stated strategy , Josemaria complements the existing portfolio of high - quality , long - life base metals mines and adds a strong third pillar to its South American copper business . Materially Increases Lundin Mining Copper Production and Scale - Once in production , Josemaria is expected to produce on average over 130,000 tonnes of copper , nearly 225,000 oz of gold and 1.0 million oz of silver annually over a 19 - year mine life¹ . This growth would increase the Company's copper production by 1 Unless otherwise noted , all information ( including scientific and technical information ) relating to the Josemaria Copper - Gold Project contained in this news release has been derived from or is based on the technical report entitled " NI 43-101 Technical Report , Feasibility Study for the Josemaria Copper - Gold Project , San Juan Province , Argentina " dated November 5 , 2020 ( the " Josemaria Technical Report " ) , prepared by or under the supervision of Andy Thomas , P.Eng . of SRK Consulting ( Canada ) Inc. , Brian Johnston , P.Eng . of Flour Canada Ltd. , Bob McCarthy , P.Eng . of SRK Consulting ( Canada ) Inc. , Cameron Scott , P.Eng . of SRK Consulting ( Canada ) Inc. , Daniel Ruane , P.Eng . of Knight Piesold Ltd. , Fionnuala Anna Marie Devine , P. Geo , of Merlin Geosciences Inc. , and Jeffery B. Austin , P.Eng . of International Metallurgical and Environmental Inc. , who are qualified persons pursuant to NI 43-101 .