Lundin Gold entered a project finance package of $400 million to $450 million with the Orion Mine Finance Group and Blackstone Tactical Opportunities. The financing provides the foundation for the development of the company’s Fruta del Norte project and shows the growing support for mining investment in Ecuador.

The financing includes a $150 million gold prepay credit facility and a $150 million stream loan credit facility, both are senior secured loan facilities entered into by the company’s operating subsidiary, Aurelian Ecuador, which holds the Fruta del Norte project. $75 million of each facility will be advanced at or shortly after closing. The remaining $75 million will be available to be drawn at the option of Lundin Gold, up to the end of June 2018, subject to the perfection of all security and certain other conditions.

The gold prepay credit facility is repayable in 19 fixed quarterly principal and interest instalments equivalent to the value of 11,500 ounces of delivered gold starting in December 2020. Lundin Gold has an option to defer the quarterly instalments for up to four quarters by increasing the gold equivalent deliveries by 1,000 ounces for each deferred quarter.

The stream loan credit facility is repayable in variable monthly principal and interest instalments equivalent to the delivery of 7.75% of gold production and 100% of the silver production starting in December 2020, up to a maximum of 350,000 ounces of gold and six million ounces of silver. Lundin Gold has an option to repay 50% of the remaining stream loan on June 30, 2024 for $150 million and/or the other 50% of the remaining stream loan on June 30, 2026 for $225 million.

Orion and Blackstone have committed to participate in future equity financings of Lundin Gold, in an aggregate amount of not less than $100 million and not more than $150 million, as and when initiated by the company and subject to minimum financing thresholds.

“We are very pleased with the financial commitments that Orion and Blackstone have made towards the development of the Fruta del Norte project and Ecuador,” said President and CEO Ron Hochstein. “It confirms the strength of this project and gives us the ability to move full speed ahead with construction.”