LUNDIN GOLD ANNOUNCES EARLY REPAYMENT OF GOLD PREPAY FACILITY
VANCOUVER, BC, Jan. 5, 2023 /CNW/ — Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) (“Lundin Gold” or the “Company”) is pleased to announce the early announcement to give full repayment of its Gold Prepayment Credit Facility (the “Gold Prepayment Facility”). All amounts are in US dollars unless otherwise noted. PDF version
Under the terms of the agreement, Lundin Gold elected to prepay the ten remaining quarterly installments of its gold prepayment facility based on gold prices in full by late December by paying $207.5 million inclusive of applicable taxes. The Gold Prepayment Facility was part of the original project financing package provided by Orion Mine Finance Group and Blackstone Tactical Opportunities in 2017 to fund the construction of Lundin Gold’s Fruta del Norte (“FDN”) gold mine in Ecuador. It was acquired by Newcrest Mining Limited through one of its subsidiaries in April 2020.
Ron Hochstein, President and CEO, commented, “We believe the early repayment of the gold prepayment facility, combined with the strong financial performance of our operations, gives Lundin Gold the flexibility to pursue operational and strategic opportunities for the benefit of the Company and our shareholders. This is a first step in the Company’s debt consolidation strategy, made possible by our strong treasury position and operating cash flow from the first two and a half years of operations at FDN. Going forward this will result in higher net cash flows and allow Lundin Gold to benefit from projected high gold prices. We believe Lundin Gold is well positioned for a strong year ahead.”
About Lundin Gold
Headquartered in Vancouver, Canada, Lundin Gold owns the Fruta del Norte gold mine in southeastern Ecuador. Fruta del Norte is one of the highest grade gold mines in the world.
The Company’s board and management team have extensive mine operations experience and are committed to the responsible operation of Fruta del Norte. The company works transparently and in accordance with international best practices. Lundin Gold strives to provide value to its shareholders while providing economic and social benefits to affected communities, promoting a healthy and safe workplace and minimizing environmental impact. The Company believes that the value created through the development of Fruta del Norte will benefit its shareholders, the government and the people of Ecuador.
The information in this press release is subject to Lundin Gold’s disclosure requirements under the EU Market Abuse Regulation. This information was publicly disclosed on January 5, 2023 at 2:00 p.m. Pacific Time through the contacts listed below.
Caution Regarding Forward-Looking Information and Statements
Certain information and statements in this press release constitute “forward-looking information” or “forward-looking statements” as such terms are defined under Canadian securities laws (collectively, “forward-looking statements”). Any statements expressing or involving discussions with respect to any prediction, expectation, belief, plan, projection, objective, assumption or future event or performance (often, but not always, identified by words or phrases such as “believes”, “anticipates”, “expects”, “expects”, “plans”, “estimates”, “pending”, “intends”, “plans”, “forecasts”, “goals” or “hopes” or variations of such words and phrases or statements that specific actions, events or results “may”, “could”, “would”, “will”, “should”, “could”, “be taken” or “occur” and similar expressions) are not historical facts and may be forward-looking statements be statements. By their nature, forward-looking statements and information involve assumptions, inherent risks and uncertainties, many of which are difficult to predict and usually are beyond management’s control, which could cause actual results to differ materially from those expressed in these forward-looking statements statements and information. Lundin Gold believes that the expectations reflected in this forward-looking information are reasonable, however there can be no assurance that these expectations will prove to be correct. You should not place undue reliance on forward-looking information. This information is only as of the date of this press release and the Company will not necessarily update this information except as required by securities laws.
This press release contains forward-looking information in a number of places, such as statements regarding the benefits to be realized from the repayment of the Gold Prepayment Facility, the outlook for gold prices and the Company’s ability to take advantage of strategic opportunities. There can be no assurance that such statements will prove to be accurate as actual results and future events of Lundin Gold 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 The Annual Information Form of Gold dated March 21, 2022 available at www.lundingold.com or on SEDAR.
Lundin Gold’s actual results could differ materially from expectations. Factors that could cause actual results to differ materially from forward-looking statements, or that could materially affect the Company or the trading price of its shares, include: risks associated with the Company’s relationships with the community; risks related to political and economic instability in Ecuador; risks associated with production, cash flow and cost estimates; the impact of a pandemic virus outbreak; risks associated with mining operations; the company’s failure to meet its obligations under its credit facilities; lack of critical supplies; control of the company’s major shareholders; risks related to Lundin Gold’s compliance with environmental laws and liability for pollution; the lack of availability of infrastructure; the Company’s dependence on a mine; exploration and development risks; risks related to the Company’s ability to obtain, maintain or renew regulatory approvals, permits and licenses; uncertainty regarding the tax regime in Ecuador; risks related to the Company’s workforce and its labor relationships; gold price volatility; the Company’s reliance on its information systems and the risk of cyberattacks on those systems; inadequate or jeopardized entitlement to concessions, easements and land rights; inherent safety risks and risks to the health and safety of Company employees and contractors; the inaccuracy of mineral reserve and resource estimates; recruiting key talent and retaining key personnel; volatility in the market price of the Company’s stock; Measures to protect endangered species and critical habitats; social media and reputation; the costs of non-compliance and compliance costs; risks associated with illegal mining; the adequacy of the Company’s insurance; risks associated with declaring dividends; uncertainty related to reclamation and decommissioning; Lundin Gold’s ability to ensure compliance with anti-bribery and anti-corruption laws; the uncertainty surrounding the risks of climate change; disclosure limits and internal controls; security risks to the company, its assets and its personnel; the potential for litigation; and risks arising from conflicts of interest.
SOURCE Lundin Gold Inc.