Lundin Mining (LUN.TO) late on Monday said it has agreed to acquire an additional 5% interest in the issued and outstanding equity of SCM Minera Lumina Copper Chile, which owns the Caserones copper-molybdenum mine in Chile, as well as a 30.9% stake in the Los Helados project and a 0.62% net smelter return royalty on Los Helados from JX Advanced Metals and affiliates for total consideration of US$215 million.

The deal is expected to increase Lundin's 2026 attributable copper production by 6,500 to 7,000 tonnes. Los Helados is expected to add meaningful copper and gold mineral resources to Lundin's metal inventory.

With Los Helados located about 17 kilometers to the south from Lundin's Caserones mine, the deal provides additional growth optionality such as potential trucking of mineralization from Los Helados to Caserones.

Lundin Mining initially acquired a 51% interest in Caserones in 2023 and increased its ownership to 70% in 2024. At deal closing, Lundin will boost its ownership interest to 75%.

The Caserones operation produces copper and molybdenum concentrates from a traditional open pit mine and conventional sulphide flotation plant, as well as copper cathode from a dump leach, solvent extraction and electrowinning plant.

Los Helados is a large copper-gold deposit in Chile's Atacama region. The deposit contains a high-grade breccia core with multiple mineralized zones, including the Condor, Fenix, and Alicanto zones, providing potential mine development optimization opportunities.

NGEx Minerals (NGEX.TO) holds the remaining 69.1% ownership in the project and is the operator. On an attributable basis, Los Helados will increase Lundin's measured and indicated copper mineral resources by 15% and gold mineral resources by 11%.

The transaction has been approved by the boards of both Lundin and JX and is expected to close in April.