The Vancouver-based company says its flagship gold and silver mine in northern Ecuador is 59% complete.
Lundin Gold Mining News
Ecuador has tethered its economic fortunes to a burgeoning mining industry. Now it just needs to get bureaucrats and community leaders on board.
A syndicate of underwriters, co-led by GMP Securities and BMO Capital Markets, had agreed on a bought deal basis to buy 7.5 million shares at C$5.40 each.
Australia’s largest gold producer has signed an option and farm-in agreement with Toronto-listed Cornerstone Capital Resources over two early stage projects in Ecuador.
Ecuador’s largest underground gold and silver mine is on track to begin production before the end of the year.
Lundin Gold expects to reach the ore body at its Fruta del Norte project in Ecuador during the first quarter of 2019, and pour first gold at around this time next year.
The asset, discovered in 2006, is expected to produce to 4.6 million ounces of gold over a 15 year mine life. That’s 73,000 ounces more than what was indicated in the previous estimate.
Companies can now perform non-systematic drilling during the early exploration phase of their mining concessions and without requiring an environmental license.
Results of the Preliminary Economic Assessment show Cangrejos is one of the world's top 15 undeveloped gold projects based on its average annual production potential.
First Quantum will invest $1.5 million to advance exploration work at the Orquideas and Cascas assets in the first year, with the option of investing an additional $37 million over the course of the subsequent four years covered by the deal.
Lundin has been developing Fruta del Norte for over a year, following an agreement with Ecuador’s government allowing the miner to move ahead with the gold project, the country's biggest.
Lundin Gold announces approval and registration of Swedish Prospectus for US $400m private placement
The Swedish Prospectus has been prepared for the admission to trading of up to 93,497,140 common shares on Nasdaq Stockholm.
“We want to grow to be an at least 1-million-ounce-a-year producer with three to four operations,” said Chief Executive Ron Hochstein at PDAC.
Newcrest to invest $250 million to take stake in Lundin Gold.
Fruta del Norte is expected to produce 340koz of gold per year over 13 years.
Having climbed almost 64% since the start of the year, investor sentiment towards SolGold appears to be quite positive.
The placing is at a 15% premium to SolGold's closing price on Thursday and at a 12% discount to its peak share price of 46.75p on May 26.
Orion and Blackstone pay up to $450 million for prepaid and streamed gold and silver from Vancouver company's Fruta del Norte project in South America.
Experts believe the value of the nation's dawning industry is set to jump from $1.1bn this year to $7.9bn in 2021 on a combination of revised regulatory framework and significant gold and copper reserves.
The country expects mining investments to increase 360% in the next four years compared to the 2013-2016 period as it has already granted 160 of the 420 explorations licences it put out to tender in July.
The project, discovered in 2006, is one of the world’s biggest recent gold findings, with reserves estimated at about 4.8 million ounces of gold and 6.3 million ounces of silver.
With construction expected to start in 2018, the US$669-million Fruta del Norte project could finally begin production before the end of the decade.
Lundin will pay Ecuador an advance royalty of $65 million. In exchange, the miner won’t be charged a windfall tax until it recovers its development investment.