Lundin Mining Corp. (TSX:LUN) has signed a deal to sell silver produced from its Portuguese mines to Silverstone Resources Corp. (TSX-V:SST) for $42.5 million.
In addition to the initial payment for silver from its Neves-Corvo and Aljustrel mines, Lundin will receive 15.4 million Silverstone shares and 4.2 million special warrants, which are convertible into Silverstone shares at no additional cost.
Lundin's Neves-Corvo mine produces about half a million ounces of silver; its Aljustrel mine, which is scheduled to begin production in September, is expected to produce 1.2 million ounces of silver.
Lundin's share price range during the past week: between $13 and $13.50; 52-week high: $15.84; 52-week low: $8.05.