Lundin Mining Corporation’s $1 Billion Acquisition of Mineração Maracá Indústria e Comércio S.A.

Stikeman Elliott, Veirano and Pinheiro Neto advised on the deal

Lundin Mining Corporation (TSX: LUN; Nasdaq Stockholm: LUMI) has entered into a definitive purchase agreement with Yamana Gold Inc. to purchase its 100% ownership stake in Mineração Maracá Indústria e Comércio S/A, which owns the Chapada copper-gold mine located in Brazil, for cash consideration of US$800 million, subject to customary adjustments. In addition, Yamana will retain a 2.0% net smelter return (NSR) royalty on future gold production from the Suruca gold deposit and receive contingent consideration of up to US$125 million over five years if certain gold price thresholds are met and contingent consideration of US$100 million on potential construction of a pyrite roaster.

Located in Brazil’s Goiás State, Chapada is expected to produce approximately 54.5 kt of copper and 100 kozs of gold, or approximately 75 kt of copper equivalent2, in 2019 at co-product cash costs of $1.60/lb to $1.80/lb copper and $430/oz gold equivalent based on latest Yamana guidance. In 2018, the operation produced approximately 58.6 kt of copper and 121 koz of gold, or approximately 82 kt of copper equivalent3, at co-product cash costs of $1.74/lb and $388/oz gold equivalent, respectively.

Since production commenced in 2007 to the end of 2018, the operation has processed 225 Mt of ore grading 0.38% copper and 0.33 g/t gold, producing approximately 743.5 kt of copper and 1.6 Moz of gold in concentrate. Potential process plant expansions are currently being studied and based on work completed to date by Yamana, a phased approach shows potential to sustain annual production in the range of 68.0 kt to 72.5 kt of copper and 100 koz to 110 koz of gold until at least 2034, as disclosed in Yamana’s fourth quarter and full year 2018 results news release dated February 14, 2019.

The Chapada orebodies are part of a large copper-gold mineralized system located in gently undulating terrain at low elevation, approximately 270 km northwest of the national capital of Brasilia. The operation is connected to the national grid via a private powerline with excess capacity for expansion.

Stikeman Elliott advised Lundin Mining Corporation with Jay c Kellerman (Picture), Ivan Grbešic, Dean Kraus, Michael Kilby y Susan M. Hutton. Asociados Kim Le, Christian Vieiras, Malcolm Peck-McQueen and Mohamed Abdel Hadi.

In Brazil, Veirano advised Lundin Mining Corporation with Pedro Garcia, André de Souza Carvalho, Cíntia de Morais Andrade, Maria Cecília Vieira, Carolina Bastos and Pedro Katz.

Pinheiro Neto advised Yamana Gold Corp. with Carlos Vilhena and Adriano Drummond C. Trindade.

Involved fees earner: Adriano Drummond Trindade – Pinheiro Neto; Carlos Vilhena – Pinheiro Neto; Ivan Grbesic – Stikeman Elliott; Susan Hutton – Stikeman Elliott; Jay Kellerman – Stikeman Elliott; Michael Kilby – Stikeman Elliott; Dean Kraus – Stikeman Elliott; Kim Le – Stikeman Elliott; Christian Vieira – Stikeman Elliott; Carolina Bastos – Veirano Advogados; André Carvalho – Veirano Advogados; Cintia de Morais Andrade Roxo – Veirano Advogados; Pedro Garcia – Veirano Advogados; Pedro Katz – Veirano Advogados; Maria Cecilia Vieira – Veirano Advogados;

Law Firms: Pinheiro Neto; Stikeman Elliott; Veirano Advogados;

Clients: Lundin Mining Corporation; Yamana Gold Inc.;