Lundin GOLD Enters into Bridge Loan Facility
NEWS RELEASE
LUNDIN GOLD ENTERS INTO BRIDGE LOAN FACILITY
January 16, 2017 (Vancouver, Canada)… Lundin Gold Inc. ("Lundin Gold" or the "Company") (TSX:
“LUG”, Nasdaq Stockholm: “LUG”) is pleased to announce that it has secured a $35 million credit facility
(the "Facility") from Zebra Holdings and Investm ents S.à.r.l., Luxembourg (the "Lender"), a company
owned by a trust whose settlor was the late Adolf H. Lundin. The Lender is an insider of Lundin Gold.
All amounts are stated in U.S. dollars ("$").
The Facility is evidenced by a debenture (the "Debenture") which is unsecured and is due on the earlier
of the closing of a financing by the Company or May 31, 2017 (the "Maturity Date"). No interest is
payable in cash during the term of the Debenture. Any amount of the Facility remaining unpaid and
outstanding on or after the Maturity Date shall bear interest at a rate of 5.00% per annum until repaid in
full.
The proceeds from the Facility will be used for general corporate purposes and for the ongoing Early
Works program. “We are pleased to receive the co ntinued support of our largest shareholder at this
critical time of the project. The proceeds from the Facility will allow us to continue discussions and
negotiations on financing initiatives without affecting the progress of the Ea rly Works program” stated
Ron Hochstein, President and CEO of Lundin Gold.
The terms of the Facility include the Company issuing to the Lender, subject to approval of the Toronto
Stock Exchange, an aggregate of 60,000 Common Shares as consideration for the Facility in lieu of
fees. The Company will also issue an additional 1,700 Common Shares per month for each $1 million
of the Facility drawn down and outstanding until the Ma turity Date. All securities issued in conjunction
with the Facility will be subject to a four-month hold period under applicable securities law.
The Facility constitutes a "related party transaction ", as defined under Multilateral Instrument 61-101
("MI 61-101"). The transactions will be exempt from the formal valuation and minority shareholder
approval requirements of MI 61-101 as neither the fa ir market value of any shares issued to or the
consideration paid for the Debenture will exceed 25% of the Company's market capitalization.
The Company also announces that the certified English translations of the Exploitation Agreement and
Investment Protection Agreement are now avai lable under the Company’s profile on SEDAR at
www.sedar.com.
About the Company
Lundin Gold Inc. owns the Fruta del Norte gold project located in southeast Ecuador. FDN is one of the
largest and highest grade undeveloped gold projects in the world. The Company is advancing FDN in
order to realize the significant potential of this asset.
The Company believes that the value created will not only greatly benefit shareholders, but also the
Government and people of Ecuador who are the Company's most important stakeholders in this project.
Lundin Gold views its commitment to corporate soci al responsibility as a strategic advantage that
enables it both to access and effectively manage business opportunities in increasingly complex
environments. Lundin Gold is committed to addressing the challenge of sustainability - delivering value
to its shareholders, while simultaneously pr oviding economic and social benefits to impacted
communities and minimizing its environmental footprint.
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Additional Information
The information in this release is subject to the disclosure requirements of the Company under the EU
Market Abuse Regulation and the Swedish Securiti es Market Act. This information was publicly
communicated on January 16, 2017 at 2:30 p.m. Pacific Time.
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.
Sophia Shane
Corporate Development
+1-604-689-7842
www.lundingold.com
Forward-Looking Statements
This press release contains or refers to forwar d-looking information under Canadian securities
legislation, including statements regarding the anticipated use of proceeds from the Facility, the ability
of the Company to satisfy the conditions of the D ebenture including repayment of the Facility upon its
maturity and the issuance of shares thereunder, and the timing and success in obtaining requisite
regulatory approvals, all of which information is based on current expectations that involve a number of
business risks and uncertainties. Forward-looking statements are subject to significant risks and
uncertainties, and other factors that could cause actual results to differ materially from expected results.
Readers should not place undue reliance on forward-looking statements.
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 "Risk Factors" section in Lundin Gold's Short Form Prospectus
dated July 12, 2016 available at www.sedar.com.
Factors that could cause actual results to differ mate rially from any forward-looking statement include,
but are not limited to, the ability to arrange financing, the timely receipt of regulatory approvals, permits
and licenses, risks related to carrying on business in an emerging market such as possible government
instability and civil turmoil and economic instability, measures required to protect endangered species,
deficient or vulnerable title to mining concessions and surface rights; the potential for litigation; volatility
in the market price of the Company's shares; the ri sk to shareholders of dilution from future equity
financings; the cost of compliance or failure to comply with applicable laws; difficulty complying with
changing government regulations and policies, including without limitation, compliance with
environment, health and safety regulations; illega l mining; uncertainty as to reclamation and
decommissioning liabilities, unreliable infrastructure and local opposition to mining; the accuracy of the
Mineral Reserve and Resource estimates for the Fruta del Norte Project and the Company's reliance on
one project; volatility in the price of gold; shortage s of resources, such as labour, and the dependence
on key personnel; the Company's lack of operating hi story in Ecuador and negative cash flow; the
inadequacy of insurance; potential conflicts of interest for the Company's directors who are engaged in
similar businesses; limitations of disclosure and internal controls; and the potential influence of the
Company's largest shareholders. The forward-looking statements contained in this press release are
made as of the date hereof and the Company assumes no responsibility to update them or revise them
to reflect new events or circumstances other than as required by law.