Lundin Mining expands credit facility to US$4.5 billion, tied to progress of the Vicuña Project

The Canadian miner has extended the maturity to 2031 and structured the increase in conditional tranches, including the sanctioning of Phase 1 of the Vicuña Project, located on the Chile–Argentina border.

Lundin Mining Corporation has agreed to amend its unsecured revolving credit facility, increasing the committed amount from US$1.75 billion to US$4.5 billion and extending its maturity to February 26, 2031. The structure provides for stepwise increases subject to operational milestones, including approval of Phase 1 of the Vicuña Project, a major copper development initiative located high in the Andes.

New financial structure and conditional scaling

Under the amended terms, the company will initially have access to US$2.25 billion. The facility will then increase to US$3.5 billion upon satisfaction of contractual conditions, and reach the full US$4.5 billion once Phase 1 is formally sanctioned.

Pricing is based on adjusted SOFR plus a margin ranging from 1.45% to 2.50%, a structure commonly seen in large-scale syndicated mining financings.

The Vicuña Project and its relevance for Chile

The Vicuña Project is located in the Vicuña district along the border and represents one of the largest copper, gold and silver projects currently in the global pipeline. Lundin Mining holds a 50% stake, positioning the initiative at the core of its copper growth strategy.

From Chile’s perspective, the project’s advancement is significant due to its potential impact on foreign investment, energy infrastructure development, and local supply chains linked to high-altitude mining operations.

Syndicated structure and banking support

The US$4.5 billion credit facility was structured as a syndicated loan with participation from leading international and Canadian banks. The Bank of Nova Scotia acted as Administrative Agent, alongside ING Capital LLC and Bank of Montreal, among other financial institutions.

The amended agreement will be filed under the company’s corporate profile on SEDAR+.

Financial terms and covenants

The facility includes standard provisions regarding fees, representations, guarantees and financial covenants, while maintaining its revolving structure, providing flexibility in liquidity management. The staged expansion of the facility is directly tied to technical milestones and investment decisions related to the project.

This alignment between operational progress and access to capital introduces financial discipline into the development of the asset.

Risks and full-tranche availability

The agreement contains customary forward-looking statements and risk disclosures related to metal prices, the regulatory environment, and compliance with financial covenants. In the case of the Vicuña Project, the formal sanctioning of Phase 1 will be decisive in unlocking access to the full committed amount.