Toronto-based Lundin Mining will acquire Josemaria Resources for C$625 million to add to its copper and gold portfolio.

Josemaria is developing its eponymous gold-copper project in the San Juan province of Argentina. The mine has a 19-year projected mine life, and is projected to produce an average over 130,000 tonnes of copper, nearly 225,000 ounces of gold and 1 million ounces of silver over its mine life.

In the mine's first three years, it is projected to produce an annual average of 166,000 tonnes of copper, 331,000 ounces of gold and 1.2 million ounces of silver.

Josemaria's production would increase Lundin's copper production by nearly 50% and gold production by 140%, using guidance for 2022.

The mine is expected to come into production in the next five years, with environmenatal approvals expected in 2022.

A September 2020 feasibility study estimated an after-tax net present value at an 8% discount of US$1.53 billion, with after-tax investor rate of return of 15.4%.

Lundin said it believes there is "significant potential" for exploration in a highly prospective and emerging district.

Josemaria has an estimated 6.7 million pounds of copper, 7.0 million ounces of gold, and 30.7 million ounces of silver in mineral reserves.