GOLD: Lundin raises $400M for Fruta del Norte development

ECUADOR – Vancouver-based Lundin Gold has made a US$400-million private placement that, with the recent senior debt facility, provides the funding to complete development of the Fruta del Norte gold project in the Cordillera del Condor region. [caption id="attachment_1003722156" align="alignright" width="237"] Visible gold in drill core from the Fruta del Norte deposit in Ecuador. (Image: Lundin Gold)[/caption] Lundin issues approximately 93.5 million common shares at a weighted average price of C$5.44 each. Subscribers include Newcrest Mining, Orion Mine Finance, Zebra Holdings, and Lorito Holdings (the Lundin family trusts). Newcrest is investing $250 million, Orion US$100 million, and the Lundin family trusts US$50 million. Upon closing, Newcrest will own 27.1% of Lundin, the Lundin family trusts will hold 22.3%, and Orion will own 11.4%. As the largest shareholder, Newcrest has the right to appoint two members to the Lundin Gold board; Orion will appoint one. Newcrest has become a strategic investor in Lundin, giving the Australian company anti-dilution rights and the opportunity to assign three employees to the Fruta del Norte project. Orion has also been granted anti-dilution rights. Newcrest and Lundin plan to establish a joint venture to explore eight early stage concessions held by Lundin to the north and south of Fruta del Norte (excluding a certain large block of concession surrounding the Fruta deposit). Detailed information about the Fruta del Norte development is available at www.LundinGold.com.