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"[Lundin Mining is] not aware of … being the subject of any investigation"

Lundin Mining (TSX: LUN) has spoken out following an online report in Chile’s Bío Bío yesterday, which was published under the translated headline “Secret investigation: Accusation of bribery links the vice president of the Chamber of Deputies with the mining company Candelaria”.
"[Lundin Mining is] not aware of … being the subject of any investigation" "[Lundin Mining is] not aware of … being the subject of any investigation" "[Lundin Mining is] not aware of … being the subject of any investigation" "[Lundin Mining is] not aware of … being the subject of any investigation" "[Lundin Mining is] not aware of … being the subject of any investigation"

Underground at Candelaria

Staff reporter

In a statement yesterday, Lundin said it was aware of the article and said both it and Compañía Contractual Minera Candelaria (CCMC) were fully committed to complying with all applicable laws.

It said the article referred to a 2015 settlement and community development agreement between CCMC and the municipality of Tierra Amarilla, under which Candelaria committed to "a multi-year community investment program totalling US$23.6 million to support flood reconstruction, regional environmental reclamation activities, community infrastructure and social programmes". 

"The agreement was concluded in an open and transparent manner, in public documents, and was approved unanimously by the Tierra Amarilla Municipal Counsel," Lundin said.

"We are not aware of the company or CMMC being the subject of any investigation."

Its 80%-owned Candelaria mine (Sumitomo owns 20%) produced 134,578 tonnes of copper, about 78,000 ounces of gold and 1.2 million ounces of silver in concentrate, on a 100% basis, in 2018.

Lundin, which also has operations in the US, Portugal and Sweden, reported a cash balance of $780 million in mid-February.

Lundin Mining shares, which have ranged from C$9.09-$4.70 over the past year, closed 4.78% or 33c lower yesterday to $6.57.

At that price, the company is capitalised at $4.8 billion.