Newcrest steps it up in Ecuador with major deal

NEWCREST Mining has agreed to invest US$250 million in Lundin Gold, the most advanced company in Ecuador.

Newcrest steps it up in Ecuador with major deal Newcrest steps it up in Ecuador with major deal Newcrest steps it up in Ecuador with major deal Newcrest steps it up in Ecuador with major deal Newcrest steps it up in Ecuador with major deal

The investment, made at C$5.50 per share, a 13% premium, is part of a broader US$400 million private placement.

Orion Mine Finance Group will invest $100 million and the Lundin Family Trusts will invest $50 million.

The funds will be used to advance the development of the $669 million Fruta del Norte gold project in Ecuador.

The bulk of the funding is via a $400-450 million financing package from Orion and Blackstone Tactical Opportunities.

Newcrest will emerge as Lundin’s largest shareholder with a 27.1% stake and will have the right to appoint two directors to the board and one nominee to the project advisory committee.

Lundin Family Trusts will ...