News Release

JX Advanced Metals Corporation (President: Hayashi Yoichi; the "Company") has entered into an agreement with Lundin Mining Corporation (CEO: Jack Lundin; "Lundin") to transfer 19% of the shares of SCM Minera Lumina Copper Chile (CEO: Marcelo Maccioni; "MLCC"), which operates the Caserones Copper Mine in Chile, to LMC Caserones SpA (the "Subsidiary of Lundin"), a wholly-owned subsidiary of Lundin. The Company previously transferred 51% of the shares of MLCC to the Subsidiary of Lundin on July 13, 2023, at which time it granted to Lundin a call option to acquire an additional 19% of the shares within one to five years at a price of 350 million USD. Lundin has now exercised that option earlier, and upon the completion of this transaction, the Company will have transferred to Lundin 70% of the shares of MLCC.

　

Lundin has extensive knowledge and high mine operation capability. Since last July, MLCC has been working with Lundin to further improve productivity and cost competitiveness. Going forward, the MLCC will further promote these efforts and pursue the possibility of more efficient and long-term business operations through the development of the entire region, including the mineral exploration areas around the mine.

　

This change will result in the focus business coming to represent a larger proportion of the Company's overall profit structure, while aiming to control volatility in the mineral resources business and strengthen its long-term earnings base. Going forward, the semiconductor materials field will be at the center of the Company's accelerating growth; as such, the Company will concentrate its management resources on this field, and particularly on sputtering targets for semiconductors, which are highly profitable and for which rapid demand growth is projected.

　

The JX Advanced Metals Group will continue to actively and flexibly promote various initiatives toward the realization of its Long-Term Vision 2040.

　

Reference
News release dated March 28, 2023: "Notice Regarding Transfer of Shares in SCM Minera Lumina Copper Chile, Operator of Caserones Copper Mine"

News release dated July 14, 2023: "Completion of Transfer of Portion of Shares in SCM Minera Lumina Copper Chile, Operator of Caserones Copper Mine"

　

Caserones Copper Mine

　

Overview of parent company of share transfer counterparty

①	Company name	Lundin Mining Corporation
②	Location	1055 Dunsmuir Street, Suite 2800 Four Bentall Centre Vancouver, BC Canada V7X 1L2
③	Name and title of representative	Jack Lundin, CEO
④	Business activities	Exploring, developing, and mining minerals in Argentina, Chile, Brazil, Portugal, Sweden, and the United States
⑤	Capital	4,574,830 thousand USD
⑥	Date of establishment	September 9, 1994

*Since LMC Caserones, the share transfer counterparty, is the wholly-owned subsidiary of Lundin for the purpose of investing in MLCC, the overview of Lundin is shown here as the actual share transfer counterparty.

　

Overview of MLCC

①	Company name	SCM Minera Lumina Copper Chile
②	Location	Av. Andrés Bello 2687, Piso 4 - Edificio del Pacífico, Las Condes, Santiago, Chile
③	Name and title of representative	Marcelo Maccioni, CEO
④	Business activities	a) Exploring and developing mining and other rights b) Purchasing and leasing mining rights for exploration or development c) Participating in exploring, developing, and commercializing mineral deposits and mining rights d) Installing and operating plants for processing and refining ore to be produced e) Marketing, exporting, and commercializing ores and products
⑤	Capital	6,820,299,932.19 USD
⑥	Date of establishment	August 20, 2003
⑦	Share of interests	Company Name	Before the transaction	After the transaction
		LMC Caserones	51％	70％
		JX Advanced Metals	49％	30％

　

Number of shares to be transferred, transfer price, and status of shares held before and after the transfer

①	Number of shares held before transfer	490,000,000,000 shares
②	Number of shares transferred	190,000,000,000 shares
③	Transfer price	350,000,000 USD
④	Percentage of shares held after transfer	30％

Schedule

①	Agreement signing date	June 26, 2024
②	Share transfer execution date	July 2024 (planned)