Newcrest ups stake in Lundin Gold to 32%
Jackson Chen | December 6, 2019 | 10:26 am Top Companies Australia Canada Gold
Lundin Gold to step up exploration in Ecuador thanks to $38m financing
Fruta del Norte, discovered in 2006, is one of the world’s biggest recent gold findings. (Image courtesy of Lundin Gold)
Newcrest Mining (ASX: NCM) has raised its stake in Canadian miner Lundin Gold from 27% to 32% with an additional C$79.6 million ($59.9 million) investment.
Newcrest announced Friday that it has acquired approximately 10.98 million shares in Lundin from Canada’s Kinross Gold at C$7.25 per share, representing a 4.2% discount to last day’s trading price.
Earlier this week, Kinross agreed to sell its remaining 9.2% stake in Lundin, which owns the Fruta del Norte gold-silver project in Ecuador, in a deal valued at roughly C$150 million ($114m). Lundin Family Trust, the other major investor that participated in the Lundin share purchase, increased its stake from 23% to 27%.
“This was a great opportunity to increase our exposure to Fruta del Norte, a tier one asset, which is expected to commence commercial production in the June 2020 quarter,” Newcrest MD and CEO Sandeep Biswas said.
Newcrest is also heavily invested in SolGold, another Ecuador-focused company. Until last week, it was SolGold’s largest shareholder until BHP further increase its stake in the Australian miner.
The Fruta del Norte mine is expected to produce 315,000 oz gold per year over a 14-year mine life at an all-in sustaining cost of $623/oz. https://www.mining.com/newcrest-mining-ups-stake-in-lundin-gold-to-32/