TORONTO (CP) -- Lundin Mining Corp. and ARCON International announced a proposed $122.7-million US merger Thursday.
ARCON's board said it plasn to recommend the offer, which would allow investors to take advantage of high commodity prices and be exposed to a broader asset portfolio.
''The combination of ARCON and Lundin will be a tremendous opportunity for ARCON shareholders to participate in the creation of a substantial European-based base metals company with considerable exploration potential,'' Peter Kidney, CEO of ARCON, said in a release.
''The timing of this potential transaction captures the recent strength in both zinc and lead commodity prices and enhances investor exposure to them.''
Lundin (TSX:LUN), is a Canadian-based mining and exploration company with a primary focus in Europe. The company changed its name from South Atlantic Ventures Ltd. last year.
The principal asset of the company is the Zinkgruvan mine in Sweden, which has been producing zinc, lead and silver since 1857.
''This merger will create a premier zinc mining investment choice for investors,'' said Lukas Lundin, chairman of Lundin Mining.
''With three low-cost and profitable mines focused in Europe, the combined company will generate substantial cash flow, which will be used to further enhance the company's growth strategy.''
ARCON is an Irish mining and exploration company that is listed on the main markets of the Irish Stock Exchange and of the London Stock Exchange.