Lundin swallows rest of North Atlantic

Vancouver — In a deal worth $15.3 million, Lundin Mining (LUN-T) is offering to purchase the shares in North Atlantic Natural Resources it does not already own.

The move comes on the heels of Lundin’s recent buy-out of Swedish-based Boliden‘s (BLS-T) stake in North Atlantic.

Lundin is offering one of its newly issued shares for every 5.3 shares in North Atlantic, which works out to 10.75 Swedish krona per share. The offer represents a discount of 10.5-12.6% to the last price paid for North Atlantic’s shares on the Swedish stock exchange.

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

Lundin’s acquisition of Boliden’s shares earlier in January gave Lundin a 74% stake in North Atlantic.

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. So far, the mine has produced more than 333,000 tonnes.

North Atlantic plans to extend Storliden lifespan through drilling in the immediate area.

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

Lundin’s main asset is the Zinkgruvan zinc-silver mine, 200 km southwest of Stockholm. And with Storliden now under its wing as well, the company believes it will be able to generate enough cash to step up exploration in the Skellefte, Bergslangen and Norrbotten mining districts in Sweden.