The total cash consideration consists of $250m purchase amount plus project expenditures from 1 January 2013 until transaction closing of $65m, subject to minor adjustments to reflect actual project expenses.
Lundin said that the acquisition has been completely funded from its current net cash balance as well as its existing $350m revolving credit facility.
Lundin Mining president and CEO Paul Conibear said, "We are very pleased to close the acquisition of this high-quality asset early, and especially pleased to see the high level of activity on site already as construction ramps up."
The Eagle Mine is located in Marquette County in the Upper Peninsula of Michigan. Construction of the project is over 50% complete with initial production anticipated to begin in the fourth quarter of 2014.
Lundin Mining is a diversified base metals mining company with operations and projects in Portugal, Sweden, Spain and the US.
