Lundin Mining Corp. (TSX:LUN; NYSE:LMC) has closed its deal to sell silver to Vancouver-based Silverstone Resources Corp. (TSX-V:SST).
Under the deal approved by regulatory authorities, Silverstone will pay Lundin US$42.5 million in cash and provide it with 19.6 million Silverstone common shares for silver produced from Lundin's Neves-Corvo and Aljustrel mines in Portugal.
Lundin will also receive cash payments upon delivery of its silver production to Silverstone of US$3.90 per ounce or less depending on prevailing market conditions.
Silverstone will receive roughly 1.7 million ounces of silver from the Neves-Corvo and Aljustrel mines annually by 2009 when both mines reach production capacity.
Lundin's share price range during the past week: between $12.71 and $12.97; 52-week high: $15.84; 52-week low: $9.35.
Silverstone's share price range during the past week: between $2.23 and $2.36; 52-week high: $3.60; 52-week low: $0.67.