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Gold/Mining/Energy : ZINC The base metal. News and Views. Symbol Zn
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From: Gofer1/6/2006 1:48:01 PM
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Here's the deal that LUN did in 2004 when they forward sold their silver:

2004-12-09 09:04:33: LUNDIN MINING: LUNDIN MINING CLOSES PREVIOUSLY ANNOUNCED AGREEMENT TO SELL ZINKGRUVAN SILVER PRODUCTION TO SILVER WHEATON

December 8, 2004 (TSX: LUN; O-List Stockholmsbörsen: LUMI) Lundin Mining Corporation (“Lundin Mining” or “the Company”) is pleased to announce that it has closed its previously announced agreement with Chap Mercantile Inc. (to be re-named “Silver Wheaton”) whereby Lundin Mining has agreed to sell all of its silver production from the Zinkgruvan mine in Sweden to Silver Wheaton in consideration for an upfront cash payment of US$50 million, 30 million Silver Wheaton shares, and 30 million whole share purchase warrants, plus a per ounce payment at a price equal to the lesser of (a) US$3.90 (subject to a consumer price adjustment after three years) and (b) the then prevailing market price per ounce of silver. Each warrant is exercisable at C$0.80 into one Silver Wheaton common share and expires on August 5, 2009.

Lundin Mining has agreed to deliver a minimum of 40 million ounces of silver to Silver Wheaton over a 25-year period. The Zinkgruvan zinc, lead and silver mine is expected to produce approximately 2 million ounces of silver per year in addition to 130 million pounds (59,000 metric tonnes) of zinc and 70 million pounds (32,000 metric tonnes) of lead annually at low cash costs. If at the end of the 25-year period, Lundin Mining has not delivered the agreed 40 million ounces, then it has agreed to pay to Silver Wheaton US$1.00 per ounce of silver not delivered.

Macquarie acted as financial advisor to Lundin Mining in connection with this transaction.
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