Lundin GOLD Closes C$57.5 Million Bought Deal Financing
885 West Georgia Street T +1 604 689 7842
Suite 2000 F +1 604 689 4250
Vancouver, BC [email protected]
Canada V6C 3E8 lundingold.com
NEWS RELEASE
LUNDIN GOLD CLOSES C$57.5 MILLION
BOUGHT DEAL FINANCING
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION TO UNITED STATES
June 11, 2020 (Vancouver, Canada) Lundin Gold Inc. ("Lundin Gold" or the "Company")
(TSX: LUG, Nasdaq Stockholm : LUG) is pleased to report that it has closed the previously
announced bought deal equity offering (the “Offering”). A total of 4,772,500 common shares
(the “Shares”) were issued at a price of C$12.05 per Share for gross proceeds of approximately
C$57.5 million, which includes the exercise, in full , of the underwriter’s over-allotment option
of an additional 622,500 Shares. The Offering was conducted by BMO Capital Markets.
The Offering was completed pursuant to a short form prospectus dated June 8, 2020 (the
“Prospectus”) in all the provinces and territories of Canada (other than Quebec) , and in the
United States on a private placement basis pursuant to an exemption from the registration
requirements of the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act”) and
applicable state securities laws and other jurisdictions outside of Canada on an exempt basis.
The Offering remains subject to the final approval of the Toronto Stock Exchange.
The net proceeds of the Offering are planned to be used to study increased throughput,
resource expansion potential at Fruta del Norte, as well as for potential COVID-19 related costs
and for general working capital purposes, as more fully described in the Prospectus.
The securities offered have not been registered under the U.S. Securities Act of 1933,
as amended, and may not be offered or sold in the United States absent registration or
an applicable exemption from the registration requirements. This press release shall
not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any
sale of the securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful.
About Lundin Gold
Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in
southeast Ecuador. Fruta del Norte is among the largest and highest -grade gold deposits in
the world.
The Company's board and management team have extensive expertise in mine operations
and are dedicated to operating Fruta del Norte responsibly. The Company operates with
transparency and in accordance with international best practices. Lundin Gold is committed
to delivering value to its shareholders, while simultaneously providing economic and social
benefits to impacted communities, fostering a healthy and safe workplace and minimizing the
environmental impact. The Company believes that the value created through the operation of
Fruta del Norte will benefit its shareholders, the Government and the citizens of Ecuador.
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Additional Information
The Prospectus and the documents incorporated by reference therein, are available on the
Company's profile on SEDAR at www.sedar.com.
The information in this release is subject to the disclosure requirements of Lundin Gold under
the EU Market Abuse Regulation. This information was publicly communicated on June 11,
2020 at 6:00 a.m. Pacific Time through the contact persons set out below.
For more information, please contact
Lundin Gold Inc.
Ron F. Hochstein
President and CEO
+593 2-299-6400
+1-604-806-3589
Lundin Gold Inc.
Sabina Srubiski
Manager, Investor Relations
+1-604-806-3089
www.lundingold.com
Follow Lundin Gold on Twitter
Caution Regarding Forward-Looking Information and Statements
Certain of the information and statements in this press release are considered "forward -looking
information" or "forward-looking statements" as those terms are defined under Canadian securities laws
(collectively referred to as "forward -looking statements" ). Any statements that express or involve
discussions with respect to predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always, identified by words or phrases such
as "believes" , "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends",
"plans", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", " will", "should" "might", "will be taken", or
"occur" and similar expressions) are not statements of historical fact and may be forward -looking
statements.
By their nature, forward -looking statements and information involve assumptions, inherent risks and
uncertainties, many of which are difficult to predict, and are usually beyond the control of management,
that could cause actual results to be materially different from those expressed by these forward-looking
statements and information. Lundin Gold believes that the expectations reflected in this forward-looking
information are reasonable, but no assurance can be given that these expectations will prove to be
correct. Forward-looking information should not be unduly relied upon. This information speaks only as
of the date of this press release, and the Company will not necessarily update this information, unless
required to do so by securities laws.
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This press release contains forward -looking information in a number of places, such as in statements
relating to use of proceeds from the Offering and the final approval of the Offering from the Toronto
Stock Exchange. There can be no assurance that such statements will prove to be accurate, as Lundin
Gold's actual results and future events could differ materially from those anticipated in this forward -
looking information as a result of the factors discussed in the "Ri sk Factors" section in Lundin Gold's
Annual Information Form dated March 24, 2020 and its Prospectus, which are available at
www.lundingold.com or on SEDAR.
Lundin Gold's actual results could differ materially from those anticipated. Factors that could c ause
actual results to differ materially from any forward-looking statement or that could have a material impact
on the Company or the trading price of its shares include: risks relating to the impacts of a pandemic
virus outbreak; risks associated with the Company's community relationships; risks related to financing
requirements; failure by the Company to maintain its obligations under its credit facilities; operating risks;
risks associated with the ramp up of mining operations; risks related to political and economic instability
in Ecuador ; risks related to production estimates ; risks related to Lundin Gold’s compliance with
environmental laws and liability for environmental contamination; volatility in the price of gold; shortages
of critical supplies; lack of availability of infrastructure; deficient or vulnerable title to mining concessions;
easements and surface rights; risks related to the Company’s workforce and its labour relations; inherent
safety hazards and risk to the health and safety of the Company’s employees and contractors ; risks
related to the Company’s ability to obtain, maintain or renew regulatory approvals, permits and licenses;
the imprecision of mineral reserve and resource estimates ; key talent recruitment and retention of key
personnel; volatility in the market price of the Company’s shares ; the potential influence of the
Company's largest shareholders ; uncertainty with the tax regime in Ecuador ; measures to protect
endangered species and critical habitats; the cost of non-compliance and compliance costs; exploration
and development risks ; the Company's reliance on one project ; risks related to illegal mining ; t he
reliance of the Company on its information systems and the risk of cyber-attacks on those systems; the
adequacy of the Company’s insurance ; uncertainty as to reclamation and decommissioning ; the ability
of Lundin Gold to ensure compliance with anti-bribery and anti-corruption laws; the uncertainty regarding
risks posed by climate change ; the potential for litigation ; limits of disclosure and internal controls ;
security risks to the Company; its assets and its personnel; conflicts of interest; the risk that the Company
will not declare dividends; and social media and the Company’s reputation.