The transaction is expected to close on or about 9 December
Image: Aerial view of the process plant of the Fruta del Norte gold project. Photo: courtesy of Lundin Gold.
Canada-based mining company Kinross Gold has agreed to sell its remaining 20.65 million shares in Lundin Gold for nearly C$150m ($113m).
The shares will be acquired by a consortium of buyers, including Newcrest Mining’s 100% owned subsidiary and the Lundin Family Trust.
These shares to be sold signify around a 9.2% stake in Lundin and are based on the company’s recent publicly released information on the number of current outstanding shares.
The sale of Lundin shares is part of Kinross’ portfolio management strategy and to strengthen its balance sheet.
This transaction is expected to close on or about 9 December.
Newcrest increases stake to 32% from 27% in Lundin Gold
The deal will raise Newcrest’s interest in Lundin Gold from nearly 27% to approximately 32% of the outstanding common shares of Lundin Gold, while the Lundin Family Trust’s stake will increase from 23% to 27%.
Through the latest move, Newcrest acquired an additional 10.97 million common shares of Lundin Gold from Kinross Gold for C$7.25 ($5.50m) per share.
The Australia-based mining company had paid $250m for a 27.1% stake in Lundin in 2018.
Lundin Gold said in a statement: “Lorito Holdings S.à.r.l. and Zebra Holdings and Investments S.à.r.l., two companies owned by a trust whose settlor was the late Adolf H. Lundin (the “Lundin Family Trust”), have agreed to acquire 8,392,714 common shares of Lundin Gold on December 5, 2019 which, when combined with the holdings Nemesia S.à.r.l., results in an aggregate holding by companies controlled by the Lundin Family Trust of 60,114,566 common shares.
“The acquisition will increase the Lundin Family Trust’s interest in Lundin Gold from approximately 23% to approximately 27% of the outstanding common shares of Lundin Gold.
“The acquisitions by Newcrest and the Lundin Family Trust are in accordance with the shareholding limits set out in the subscription agreement between Lundin Gold Inc. and Newcrest dated February 24, 2018.”
In November, Lundin Gold inaugurated its wholly-owned Fruta del Norte gold project in Southeast Ecuador.
Discovered in 2006 by Aurelian Resources, the Fruta del Norte gold project broke ground in mid-2017.