TORONTO (miningweekly.com) – Base-metals-miner Lundin Mining has entered into a nonbinding agreement to sell its Aljustrel zinc mine, in Portugal to MTO SGPS, a Portuguese company, the firm announced on Friday evening.

Besides other conditions, the agreement requires final approval from the boards of Lundin and MTO.

The agreement is expected to be finalised in the last week of December, Lundin said.

The group, which has mines in Portugal, Sweden, Ireland and Spain, and has a stake in Freeport-McMoRan's giant Tenke Fungurume copper project, in the Democratic Republic of Congo, is the subject of a friendly takeover bid by fellow Canadian HudBay Minerals.

Lundin CEO Phil Wright announced last month that the company would put the loss-making Aljustrel mine on care-and-maintenance until metal prices recovered, and that he would consider putting the mine up for sale.

Toronto-based Lundin recognised a charge of $8-million in the third quarter in relation to the Aljustrel closure, and said at the time that it expected an additional charge of between $10-million and $15-million by the end of the year.

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