Lundin Mining (LUN.TO) Wednesday on Wednesday said it closed the $4.5-billion joint acquisition of Filo Corp. with BHP Group (BHP).

Concurrently, Lundin Mining and BHP formed a 50/50 joint arrangement, Vicuna Corp to hold the Filo del Sol project (FDS) and Lundin's Josemaria project. On completion, BHP paid Lundin Mining a cash consideration of US$690 million for a 50% interest in the Josemaria project

Vicuna will create a strategic alliance between Lundin Mining and BHP to jointly develop an emerging copper district in Argentina. The proximity of the FDS and Josemaria projects allows for greater economies of scale and increased optionality for staged expansions, as well as future exploration as the district matures.

"Vicuna is targeting a mineral resource estimate for both the Filo del Sol and Josemaria deposits within the first half of 2025. This resource estimate will form the basis of an integrated technical report which will outline the development plan for the phased construction of the district," said Lundin Mining chief executive Jack Lundin. "The district represents an opportunity to deliver on the world's growing copper needs in a meaningful way, both in terms of scale and operational excellence."

Lundin shares were last seen up $0.12 to $12.34 on the Toronto Stock Exchange.