Lundin Mining Corp. has acquired a 15.4-per-cent stake in Salazar Resources Ltd. , a junior miner with operations in Ecuador.
Lundin acquired the stake by taking up 80 per cent of a private placement deal saw Salazar raise $3 million by issuing six million shares and half-warrants of the company.
Additionally Silvercorp Metals Inc. took part in the financing to maintain its 10.7-per-cent stake in Salazar, which is developing the El Domo gold and base metals deposit in Ecuador.
“Lundin Mining is world-renowned for their successes in identifying and advancing high quality mineral development projects through to production,” Salazar chief executive officer Fredy Salazar said in a release before stock markets opened Friday.
Salazar is developing the Curipamba project, which includes the El Domo deposit. The company also has a portfolio of 42,900 hectares of exploration property.
Lundin is a diversified miner producing copper, zinc, lead and nickel from mines in Portugal, Sweden, Spain and Ireland.
The company's main mines are the underground Neves-Corvo operation in Portugal, the Galmoy mine in Ireland, Aguablanca in Spain and Zinkgruvan in southwestern Sweden.
In addition, the company has development projects which include its Neves-Corvo mine and a stake in the Tenke Fungurume copper/cobalt mine which is undergoing a major expansion in the Democratic Republic of Congo.