BHP and Lundin Mining to buy Filo for $3.25 billion

(Reuters) – Global miner BHP Group (NYSE:) and Canada-listed Lundin Mining (OTC:) will takeover explorer Filo Corp for C$4.5 billion ($3.25 billion), the companies said on Monday, as they move to progress the Filo del Sol and Josemaria projects.

BHP and Lundin will form a 50/50 joint venture to hold both the projects.

Under the deal, BHP is expected to pay a total of $2.1 billion in cash.

BHP and Lundin have offered C$33 per Filo share, reflecting a 12.2% premium to the Canadian miner’s last close on Monday.

($1 = 1.3854 Canadian dollars)