Lundin Mining Receives Commitments to Increase its Existing Credit Facility to $4.5 Billion

Executive Summary

• Lundin Mining has received commitments from 17 lenders to upsize and amend its existing revolving credit facility to a total capacity of $4.5 billion.
• The facility is structured in tranches: an initial access of $2.25 billion, expanding to $3.5 billion upon satisfaction of certain conditions, and reaching the full $4.5 billion upon the sanctioning of Stage 1 of the Vicuña Project.
• The maturity date has been extended to 2031, and pricing remains unchanged (1.45% to 2.50% over adjusted SOFR), supporting the funding of the Vicuña Project and general corporate purposes while maintaining annual shareholder distributions.

Key Details

• Total Commitments: $4.5 billion USD.
• Lenders: 17 total lenders (12 existing lenders and 5 new lenders).
• Initial Access: $2.25 billion USD available immediately upon execution.
• Expansion Tranches:
  • Increases to $3.5 billion USD upon satisfaction of certain conditions.
  • Increases to full $4.5 billion USD upon sanctioning Stage 1 of the Vicuña Project.
• Maturity: Extended to 2031.
• Pricing: Unchanged from current facility; sliding scale margins ranging from 1.45% to 2.50% over adjusted SOFR, dependent on the Company's leverage ratio.
• Use of Proceeds: Facilitate funding of the Vicuña Project and general corporate purposes.
• Strategic Context: Supports Lundin Mining's goal to become a top-ten global copper producer with annual production of over 500,000 tonnes of copper once Vicuña is in full operation.
• Shareholder Impact: The facility positions the company to fund its share of the Vicuña Project while continuing annual shareholder distributions of $220 million.
• Documentation: The amended agreement is subject to customary conditions precedent and will be filed on SEDAR+ upon execution.

Notable Quotes

• Teitur Poulsen, Chief Financial Officer: "The upsizing of our Credit Facility to $4.5 billion is one of the cornerstones to advancing the Vicuña Project and keeps us on track of our goal to become a top-ten global copper producer with annual production of over 500,000 tonnes of copper once Vicuña is in full operation."
• Teitur Poulsen, Chief Financial Officer: "As we continue to work with our partner BHP to optimize the funding strategy for the Vicuña Project, the extension and upsizing of the Credit Facility further strengthens our financial flexibility and underscores the confidence of our lending partners in the quality of the Vicuña Project and our broader operating portfolio."