Lundin GOLD Reports Purchase of the Existing GOLD Prepay and Stream Facilities and Related Offtake BY Newcrest
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NEWS RELEASE
LUNDIN GOLD REPORTS PURCHASE OF
THE EXISTING GOLD PREPAY AND STREAM FACILITIES AND
RELATED OFFTAKE BY NEWCREST
April 29, 2020 (Vancouver, Canada) Lundin Gold Inc. ("Lundin Gold" or the "Company")
(TSX: LUG, Nasdaq Stockholm : LUG) announced today that Newcrest Mining Limited
(“Newcrest”) has acquired the project financing package provided to Lundin Gold’s Fruta del
Norte mine (“Fruta del Norte”) in Ecuador by Orion Mine Finance Group (“Orion”) and funds
managed by Blackstone Tactical Opportunities (“Blackstone”).
The Orion and Blackstone project financing package , which was put in place in 2017, is
comprised of a gold prepay credit facility for $150 million, a stream loan credit facility of $150
million and an offtake agreement for 50% of gold production from Fruta del Norte , up to a
maximum of 2.5 million o unces. The gold prepay and stream facilities were fully drawn by
Lundin Gold by early 2018 to fund the development of Fruta del Norte.
The terms of the gold prepay and stream credit facilities and the offtake agreement have not
changed as a result of this transaction.
“We are grateful to the commitment that Orion and Blackstone made to the development of
Fruta del Norte at a critical time to us. Their investment in Lundin Gold was a turning point in
the success of the Project,” said Ron Hochstein, Lundin Gold President and CEO. “Newcrest’s
continued support for and investment in Fruta del Norte speaks to the tremendous potential of
this unique deposit.”
Orion and Newcrest are both significant shareholders of Lundin Gold, holding 10.79% and
31.85% of the Company’s outstanding shares respectively. The acquisition of the Orion and
Blackstone project financing package does not entail a change in either shareholder’s position
in Lundin Gold.
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 advancing 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 development
of Fruta del Norte will benefit its shareholders, the Government and the citizens of Ecuador.
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Additional Information
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 April 29,
2020 at 4:30 p.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
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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.
This press release contains forward -looking information in a number of places, such as in statements
relating to the acquisition of the Orion and Blackstone project financing package by Newcrest . 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 Annual Information Form dated
March 24, 2020, which is available at www.lundingold.com or on SEDAR.
Lundin Gold's actual results could differ materially from those anticipated. Factors that could cause
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
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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 projec t; 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.