Boliden has entered into a definitive agreement with Lundin Mining to acquire the Neves-Corvo mine in Portugal and the Zinkgruvan mine in Sweden. The upfront cash consideration for the entities is USD 1,300 m plus contingent payments that can reach up to USD 150 m, on a cash and debt-free basis. The transaction, that considerably strengthens Boliden's mine production as well as internal zinc and copper concentrate supply, is subject to customary regulatory approvals.

"The addition of two cash flow generative zinc and copper mines in Portugal and Sweden has a strong industrial logic as well as a strategic fit. Summary of the Transaction. Boliden has entered into a Definitive agreement to acquire the mines Somincor-Sociedade Mineira de Neves-Corvo, S.A. ("Neves-Corvo") and Zinkgruvan Mining Aktiebolag ("Zinkgruvan") for an upfront cash consideration corresponding to USD 1,300 m plus a contingent payment up to USD 150 million, on a cash and debt -free basis (the "Transaction").

The Transaction has a strong industrial logic and strategic fit, complementing current Boliden operations with two well-invested mines. Following the Transaction, zinc and copper concentrate production will increase from 35% to 70% of zinc smelting capacity and 30% to 40% of copper smelting capacity. The Transaction will lead to a significant increase in production of metals in concentrate in Business Area Mines, by 95% for zinc and 43% for copper, based on 2023 production figures.

The Transaction is expected to be immediately accretive to Boliden's earnings per share from completion of the Transaction and contribute with >10% to Cash EPS1). The EBITDA contribution from the Neves-Corvo and Zinkgruvan mines over the next five years is estimated to amount to USD 300-350 m annually, assuming consensus prices and terms. The upfront cash consideration will be fully financed through a bridge loan, which is expected to be refinanced through a share issue corresponding to approximately half of the bridge loan (the "Share Issue"), and the remaining amount in medium and long-term debt financing. Zinkgruvan's cash cost position is in the middle of the second quartile of the mining cost curve for zinc. EBITDA is calculated as Revenue less Production Costs, General Exploration and Business Development expenses.

Boliden post completion of the Transaction. Post completion, Boliden will operate seven mining areas and five smelters, mainly focused on the value chains for zinc and copper. Out of the seven mining areas, four are located in Sweden and one each in Finland, Ireland and Portugal.

Following the Transaction, including the expansion of Odda and the restart of Tara, Boliden's concentrate production will increase from 35%, to 70% of zinc smELting capacity and 30% to40% of copper smelting capability over the coming years. Production of metals in concentrate in Business area Mines will increase, based on 2023 production figure, by 95% for copper and 43% for copper. The Transaction is expected to been accretive to earnings per share post completion.