Lundin Mining Hits Yr High, Heavily Traded on Completion of Tenke Fungurume Contract Review Process

By Staff,

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Lundin Mining Corp (LUN.TO) has hit a year high $6.98 after reporting that the government of the Democratic Republic of Congo ( DRC ) and Freeport-McMoRan Copper & Gold Inc. today announced the successful conclusion of the review of Tenke Fungurume Mining's (TFM) contracts. More than 13.3 million Lundin shares have changed hands.

TFM agreed to several commitments, including an increase in Gecamines ownership interest in TFM from 17.5% to 20%.

Lundin noted that the shareholding change benefiting Gecamines will be shared proportionately by Lundin Mining and Freeport-McMoRan Copper & Gold Inc ( FCX ). As a result Lundin Mining's equity interest in TFM will reduce from 24.75% to 24%. The company will benefit from the increase in the annual interest rate on advances from the current rate of LIBOR +2% to LIBOR +6%.

Commenting on the news, Mr. Lukas Lundin, Chairman of Lundin Mining said: "We are very pleased to have achieved this resolution which has important benefits as we and our partners continue to pursue the significant potential of the highly prospective mineral district at Tenke Fungurume."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: DRC , FCX

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