ECUADOR – Lundin Gold of Vancouver has secured credit approval for US$300 million of senior debt facility for the continuing development of the Fruta Del Norte underground gold mine in the Cordillera del Condor region. Total pre-production cost of the project is US$684 million.
Underground development has begun at the Fruta del Norte gold mine in Ecuador. (Image: Lundin Gold)
The money is being loaned by a syndicate of five senior lenders – ING Capital LLC, Societe Generale, Caterpillar Financial Services Corporation (Cat Financial), The Bank of Nova Scotia and KfW IPEX-Bank GmbH.
Lundin will draw down the amount in two tranches, the first being US$100 million and the second US$200 million.
First gold production from Fruta del Norte is expected in Q4 2019. At peak production, output will be approximately 370,000 oz. annually. All-in sustaining costs over the life of the mine will be US$609 per oz. of gold. The project has an indicated resource of 23.8 million tonnes grading 9.61 g/t gold for 7.35 million oz. plus an inferred resource of 11.6 million tonnes at 5.69 g/t for 2.13 million oz. of gold.
Readers are encouraged to read the latest Lundin Gold corporate presentation at www.LundinGold.com for more information.