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Boliden (NASDAQ OMX Stockholm: BOL) agreed to acquire the Kevitsa nickel-copper-gold-PGM mine in Northern Finland from First Quantum Minerals (TSX:FM)(LSE:FQM) for $712 million in cash. The deal is subject to approval by competition authorities. “This is an attractive opportunity to acquire a high-quality mine with excellent operational and geographical fit with Boliden. The acquisition of Kevitsa is consistent with Boliden’s growth strategy. Kevitsa started production in the end of 2012 and is an early stage mine, which we believe can provide good synergies with our existing business in mining, concentrating, smelting and regional exploration. It also establishes a nickel feed base load for our Harjavalta smelter”, says Boliden’s president and CEO, Lennart Evrell. “This transaction is one of the initiatives within our plan, announced in October 2015, aimed at strengthening the Company’s balance sheet and improving its capital structure to better suit the development and start-up timetable of the Cobre Panama project. We are continuing to advance other strategic initiatives, which are expected to be finalized at various times over the next several months, to meet those objectives,” said Philip Pascall, Chairman and CEO of First Quantum. The Kevitsa mine is a nickel-copper-gold-Platinum Group Metals (PGM) mine located in northern Finland. In 2015, nickel and copper accounted for roughly 40% each of net revenue, with gold, PGM and cobalt accounting for the remainder. The mine processed 6.7 Mtonnes of ore in 2015. The mine has 380 employees and around 200 contractors. In 2015, production was 8,805 tonnes of nickel, 17,204 tonnes of copper, 12,847 ounces of gold, 31,899 ounces of platinum and 25,196 ounces of palladium. EBITDA during 2015 amounted to USD 42 million and EBIT was USD -6 million. The total consideration for the transaction is USD 712 million on a debt free basis, paid in cash, together with adjustments for working capital and net debt at closing. The transaction will be financed with a committed 24 month bank facility provided by Nordea. Boliden will evaluate a range of refinancing options for this bank facility. The transaction is subject to customary approval by competition authorities in Finland, Sweden and Germany. Goldman Sachs International is acting as sole financial adviser to Boliden in connection with the acquisition. Boliden, based in Stockholm, Sweden, is a metals company with a commitment to sustainable development. Its roots are Nordic, but its business is global. The company’s core competence is within the fields of exploration, mining, smelting and metals recycling. Boliden has 4,900 employees and a turnover of SEK 40 billion. Its shares are listed on BRITISH COLUMBIA, Large Cap segment. First Quantum Minerals Ltd. is a well-established and rapidly growing metals and mining company producing mainly copper, nickel, zinc, gold and platinum group elements. With a geographically diversified portfolio of high-quality operations and development projects and a strategic plan to achieve 1.3 million tonnes per annum of copper production capacity within five years, First Quantum is poised to become the largest widely-held, pure-play copper producer and one of the top five copper producers in the world. The company was first incorporated in 1983 under the name Xenium Resources. In 1996, it changed its name to First Quantum Minerals Ltd. The company’s assets are located in Zambia, Spain, Mauritania, Australia, Finland, Turkey, Panama, Peru and Argentina. The company is based in Vancouver, Canada.]]>