At the request of market surveillance officials, Lundin Mining (TSX:LUN, Stock Forum) has issued an updated response to media speculation that that the company had acquired Freeport-McMoRan Copper & Gold's (NYSE:FCX, Stock Forum) Candelaria copper mine located in Chile.
The company said it has been actively pursuing the potential acquisition of advanced stage projects or an operating mine as part of a long standing growth initiative.
“While progress has been made on this initiative, there is no assurance that the company will proceed with such a transaction or, if it does, as to the terms and conditions or timing of any agreement relating to the possible transaction,” Lundin said in a press release.
The shares had earlier rallied as investors reacted to an article in the Chilean newspaper, El Mercurio (Spanish), which implied that the $2.0 billion dollar deal came as a relief to the struggling Freeport as it wrestled with its current debt load of $20.9 billion.
The mine itself is Freeport's fifth biggest and is considered the second biggest in Chile. The alleged deal has some Stockhouse bullboarders saying Lundin could hit a $5.0 billion market cap in just a few years.
Lundin stepped into the fray with a decidedly zipped mouth as it stated unequivocally that it would not, as general policy, comment on industry or market speculation or rumors and would release information on material transactions in a timely manner as required by applicable law.
So in the end, investors are left in limbo until this transaction, if real, becomes official, but that did not stop the market from jumping on the speculative bandwagon.
Lundin Mining was in the news recently when the company announced the election of directors at the beginning of May.
Shares climbed 4.47% on the news to $6.55 per share.
Currently there are 585.8m outstanding shares with a market cap of $3.8 billion.