(RTTNews) – Lundin Gold Inc. (LUG.TO, LUG.ST, LUGDF), a Canadian mining, on Sunday announced a binding term sheet for a $670 million silver stream-for-equity transaction with LunR Royalties Corp. (LUNR.V, LNRCF).
The deal involves the sale of a silver stream on the Fruta del Norte mine in Ecuador in exchange for 50,505,051 newly issued LunR shares valued at approximately $670 million based on the 20-day VWAP as of February 20.
The transaction closing is expected in the second quarter of 2026.
Under the stream terms, the company will sell 100% of payable silver production until 12.2 million ounces have been delivered, followed by 50% until an additional 7.8 million ounces have been delivered, and 7.5% thereafter for the remaining life of mine.
The ongoing payments will equal 10% of the spot silver price up to the first threshold, 20% up to the second threshold, and 30% thereafter.
Silver currently accounts for about 1% to 2% of total revenue and is forecast to contribute 500,000 to 600,000 ounces of payable silver in 2026.
On Friday, Lundin Gold Inc. closed trading 0.77% lesser at CAD 108.16 on the Toronto Stock Exchange.
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