The Globe and Mail reports in its Saturday, July 12, edition that unnamed sources say Lundin Mining ($6.27) is emerging as the favourite to buy, in partnership with Franco-Nevada ($62.53), a major Freeport-McMoRan Copper & Gold copper mine in Chile. The Globe's Rachelle Younglai writes that sources say
Lundin would pay more than $2-billion for the Candelaria mine. Sources say Franco-Nevada would contribute $1-billion for a stream of the mine's future gold production.
Lundin, says Ms. Younglai, has been hunting for a copper acquisition for more than two years. Lundin has said assets with at least a 10-year mine life and capable of producing about 50,000 tonnes of copper a year would be ideal.
Freeport recently sold its Eagle Ford shale assets to Canada's EnCana ($23.49) for $3.1-billion.
One source says Freeport had been aiming to announce the sale of Candelaria by midyear.
Freeport's process, however, has been delayed because it is waiting to hear from the mine's minority owner, Japan's Sumitomo, which holds a 20-per-cent interest in the Chilean mine.
Barrick Gold's ($20.71) former chief executive officer Aaron Regent had also expressed an interest in Candelaria, one source says.
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