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Lundin Gold Secures Silver Stream Agreement with LunR Royalties

Apr 03, 2026 07:44 UTC
LUGDF, LNRCF, LUG.TO
Short term

Lundin Gold Inc. has entered into a definitive silver stream agreement with LunR Royalties Corp. for its Fruta del Norte gold mine in Ecuador. The deal is expected to close in Q2 2026.

  • Lundin Gold and LunR Royalties have entered a silver stream agreement for the Fruta del Norte gold mine.
  • The transaction is expected to close in Q2 2026.
  • LunR will provide 50,505,051 common shares in exchange for a life-of-mine silver stream.
  • Lundin Gold will distribute the LunR shares as a dividend in kind to shareholders.
  • Lundin Gold's shares rose 1.28% on Thursday, while LunR's shares increased 0.07%.
  • The deal is expected to provide upfront capital without retaining ownership in LunR.

Lundin Gold Inc. (LUGDF, LUG.TO) has announced a definitive silver stream agreement with LunR Royalties Corp. (LNRCF) for its Fruta del Norte gold mine in Ecuador. The transaction is set to close in the second quarter of 2026. Under the terms of the agreement, LunR will acquire a life-of-mine silver stream in exchange for 50,505,051 LunR common shares. Lundin Gold plans to distribute these shares to its shareholders as a dividend in kind and will not retain any ownership in LunR. The deal could provide Lundin Gold with upfront capital, potentially influencing its financial strategy and stock performance. On Thursday, Lundin Gold's shares rose 1.28% to CAD 111.41 on the Toronto Stock Exchange, while LunR Royalties saw a 0.07% increase to CAD 29.92 on the TSX Venture Exchange. The agreement reflects a strategic move by Lundin Gold to optimize its asset portfolio and secure funding through non-traditional means. The impact of the deal on broader markets is expected to be limited, with the primary effects felt within the company's operations and shareholder value. Investors are likely monitoring the transaction's execution and its implications for Lundin Gold's future capital allocation.

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