DOWNLOAD THE MINING EXECUTIVE APP NOW
"Global Mining Descisions in Your Palms"
Lundin Gold Inc. (“Lundin Gold” or the “Company”) (TSX: LUG, Nasdaq Stockholm: LUG) reports that its two largest shareholders have each agreed to increase their interest in the Company through the acquisition of the Company’s common shares from Kinross Gold Corporation
A subsidiary of Newcrest Mining Limited (“Newcrest”) has agreed to acquire 10,977,502 common shares (representing 4.9% of the outstanding common shares) of Lundin Gold on December 5, 2019 for C$7.25 per share, or C$79.6 million in the aggregate, at a 4.2% discount to last trade price, resulting in an aggregate holding of 71,470,787 common shares. The acquisition will increase Newcrest’s interest in Lundin Gold from approximately 27% to approximately 32% of the outstanding common shares of Lundin Gold.
“This was a great opportunity to increase our exposure to Fruta del Norte, a Tier 1 asset, which is expected to commence commercial production in the June 2020 quarter,” said Sandeep Biswas, Newcrest Managing Director and Chief Executive Officer.
Lorito Holdings S.à.r.l. and Zebra Holdings and Investments S.à.r.l., two companies owned by a trust whose settlor was the late Adolf H. Lundin (the “Lundin Family Trust”), have agreed to acquire 8,392,714 common shares of Lundin Gold on December 5, 2019 which, when combined with the holdings Nemesia S.à.r.l., results in an aggregate holding by companies controlled by the Lundin Family Trust of 60,114,566 common shares. The acquisition will increase the Lundin Family Trust’s interest in Lundin Gold from approximately 23% to approximately 27% of the outstanding common shares of Lundin Gold.
The acquisitions by Newcrest and the Lundin Family Trust are in accordance with the shareholding limits set out in the subscription agreement between Lundin Gold Inc. and Newcrest dated February 24, 2018.
About Fruta del Norte
Lundin Gold Inc. owns the Fruta del Norte which is a high-grade, underground gold-silver mine located in southeastern Ecuador. Lundin Gold Inc. has reported in its National Instrument 43-101 Technical Report the following information in relation to Fruta del Norte as at 30 April 2016;
• First quartile Life of Mine All-In Sustaining Cost of $623 per ounce
• Expected average annual gold production of 315koz
• Expected 14 year mine life
• Probable mineral reserves of 4.82moz grading 9.67g/t Au
• Sits within >70,000 ha of prospective granted tenure
About Lundin Gold
Lundin Gold, headquartered in Vancouver, Canada, wholly-owns the Fruta del Norte gold project in southeast Ecuador. The Company’s board and management team have extensive expertise in mine operations and are dedicated to advancing Fruta del Norte to commercial production in the second quarter of 2020.