Lundin will control North Atlantic

Vancouver — Lundin Mining (LUN-T) is buying an additional 37% interest in North Atlantic Natural Resources, thereby more than doubling its stake in the Swedish company. The 37% interest is currently held by Boliden (BLS-T).

Lundin will issue 2.2 million shares to Boliden worth $22.3 million; as a result, its stake in North Atlantic will rise to 74%.

North Atlantic’s main asset is the Storliden zinc-copper-gold-silver mine in northern Sweden. The mine entered production in 2002 as a joint venture between North Atlantic and Boliden, with the latter as operator.

At the end of 2003, Storliden had proven and probable reserves of 1.1 million tonnes grading 9.8% zinc and 3.5% copper, plus 0.3 gram gold and 25.4 grams silver per tonne. Production has so far exceeded 333,000 tonnes of ore.

North Atlantic plans to extend the life of the Storliden mine through drilling in the immediate area.

The company holds other exploration permits in the region, including Lappvattnet (copper-nickel) and Copperstone (copper).

Lundin and North Atlantic already share some management: Lundin President Edward Posey also presides over North Atlantic, and Lundin Chairman Lukas Lundin is on the board of North Atlantic.

Lundin’s main asset is the Zinkgruvan zinc-silver mine, 200 km southwest of Stockholm.