‘Full speed ahead’ for Lundin’s Ecuador gold project after financing deal – by Frik Els (Mining.com – May 30, 2017)

http://www.mining.com/

Shares in Lundin Gold (TSE:LUG) declined Tuesday after the company announced a $400–$450 million project financing package for its 100%-owned Fruta Del Norte project in Ecuador.

After a jump at the start of trading, in afternoon dealings on the TSX the Vancouver-based company was exchanging hands for $6.16 down 1%, amid a generally lacklustre day on the gold market. Lundin Gold is worth $736.7 million after a 17% year to date gain.

In a statement Lundin Gold said the project finance package agreed with private equity groups Orion Mine Finance and Blackstone Tactical Opportunities is a sign of “growing support for mining investment in Ecuador.”

According to Lundin Gold the financing is comprised of a gold prepay credit facility for $150 million, a stream loan credit facility of $150 million and committed participation of $100 to $150 million to future equity financings required to fund the project.

The streaming deal is repayable in variable monthly principal and interest instalments equivalent to the delivery of 7.75% of gold production and 100% of the silver production starting in December 2020, up to a maximum of 350,000 oz of gold and six million oz of silver according to the statement.

For the rest of this article, click here: http://www.mining.com/full-speed-ahead-lundins-ecuador-gold-project-financing-deal/

Comments are closed.