VANCOUVER, BC, Nov. 14,
2023 /CNW/ - Lundin Gold Inc. (TSX: LUG)
(Nasdaq Stockholm: LUG) (OTCQX: LUGDF) ("Lundin Gold" or the
"Company") is pleased to announce that it has fully repaid the
remaining balance plus accrued interest for a total payment of
$72.2 million under its senior debt
facility ("Senior Facility"), well in advance of its original
maturity date of June 2026. With
this, the Company has extinguished all bank debt. All dollar
amounts are stated in U.S. currency, unless otherwise indicated.
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The Senior Facility was established in 2018 to fund the
development and construction of the Fruta del Norte ("FDN") gold
mine in Ecuador with an original
principal amount of $350 million from
a syndicate of seven lenders that consisted of ING Capital LLC,
Societe Generale, Caterpillar Financial Services Limited (Cat
Financial), The Bank of Nova
Scotia, Natixis, KfW IPEX-Bank GmbH and Bank
of Montreal, a portion of which was supported by a raw
material guarantee provided by the Finnish export credit agency,
Finnvera plc.
Ron Hochstein, President and CEO
commented, "I would like to take this opportunity to thank each
of the lenders and guarantor for their participation and trust in
Lundin Gold, the country of
Ecuador, and Fruta del Norte in
2018. Their belief and continued support through the
construction of FDN and subsequent transition to operations allowed
us to introduce responsible mining in Ecuador and create opportunities for the
people of Zamora-Chinchipe that may not have otherwise existed. We
are pleased to execute our debt reduction strategy on an
accelerated basis. The full repayment of the Senior Facility
provides Lundin Gold with improved
free cash flow margins and increased capital allocation
flexibility."
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
highest-grade operating gold mines in the world.
The Company's board and management team have extensive expertise
in mine operations and are dedicated to operating 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.
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 November 14, 2023 at
2:00 p.m. Pacific Time through the
contact persons set out below.
SOURCE Lundin Gold Inc.