VANCOUVER, April 29, 2020 /CNW/ - Lundin Gold Inc. ("Lundin Gold" or the "Company") (TSX: LUG, Nasdaq Stockholm: LUG) announced today that Newcrest Mining Limited ("Newcrest") has acquired the project financing package provided to Lundin Gold's Fruta del Norte mine ("Fruta del Norte") in Ecuador by Orion Mine Finance Group ("Orion") and funds managed by Blackstone Tactical Opportunities ("Blackstone"). PDF Version.

The Orion and Blackstone project financing package, which was put in place in 2017, is comprised of a gold prepay credit facility for $150 million, a stream loan credit facility of $150 million and an offtake agreement for 50% of gold production from Fruta del Norte, up to a maximum of 2.5 million ounces. The gold prepay and stream facilities were fully drawn by Lundin Gold by early 2018 to fund the development of Fruta del Norte.

The terms of the gold prepay and stream credit facilities and the offtake agreement have not changed as a result of this transaction.

"We are grateful to the commitment that Orion and Blackstone made to the development of Fruta del Norte at a critical time to us. Their investment in Lundin Gold was a turning point in the success of the Project," said Ron Hochstein, Lundin Gold President and CEO. "Newcrest's continued support for and investment in Fruta del Norte speaks to the tremendous potential of this unique deposit."

Orion and Newcrest are both significant shareholders of Lundin Gold, holding 10.79% and 31.85% of the Company's outstanding shares respectively. The acquisition of the Orion and Blackstone project financing package does not entail a change in either shareholder's position in Lundin Gold.