Lundin Mining Corporation (TSX:LUN) has approached BHP Group Limited (ASX:BHP) about making a joint bid for copper miner Filo Corp. (TSX:FIL), people with knowledge of the matter said, in a move that could solve fundraising needs for a neighboring project it wants to build. Lundin has held preliminary discussions with BHP about teaming up on a possible deal for Filo, according to the people, who asked not to be identified as the information is private.

Shares of Filo jumped as much as 12% on the news before giving back some gains. The stock traded 8% higher at 3:36 p.m. in Toronto, giving the company a market value of about $3.7 billion (USD 2.7 billion). It?s unclear how receptive BHP is to the proposal.

The wealthy Lundin family, who own about 15% of their eponymously named miner, have a 32% stake in Filo while BHP holds nearly 6%, according to data compiled by Bloomberg. Lundin has pitched the idea of buying out other shareholders in Filo and then combining the target?s Filo del Sol copper project ? located on the Argentina-Chile border ?

with Lundin?s neighboring Josemaria operation, the people said. Bringing the two assets together would make it easier for Lundin to finance their development while bringing BHP much-needed growth in copper. Talks are at a preliminary stage and there are no guarantees they will proceed with a bid, the people said.

Representatives for BHP and Lundin declined to comment. Filo didn?t immediately respond to requests for comment.