ING Capital, along with Société Générale, Cat Financial, The Bank of Nova Scotia and KfW IPEX-Bank GmbH, provided commitments for a $300 million senior secured project finance facility for Canadian mining company Lundin Gold.

The facility will be used to fund the development and construction of the company’s Fruta del Norte gold project in Ecuador.

“This facility further reflects a strong endorsement of the project and confidence in the Lundin Gold team,” said Ron Hochstein, president and CEO of Lundin Gold. “We look forward to working with this supportive group of lenders as we continue to develop Fruta del Norte.”

The facility will include two tranches: tranche A of $100 million, to be guaranteed by an export credit agency satisfactory to the lenders, and tranche B of $200 million. The term of the facility will be eight and a half years, and there are no mandatory requirements for gold hedging associated with the facility.

The facility is subject to completion of definitive documentation, which will include customary project finance terms, fees and conditions, a comprehensive inter-creditor agreement and completion of ongoing due diligence.

Endeavour Financial acted as debt financing advisor for Lundin Gold, with Norton Rose Fulbright Canada acting as its legal counsel and Lexim Abogados assisting in Ecuador.