Mentioned:
LUNR LUN -12.61% NEM -7.97%

LunR Royalties has just struck a big new deal for silver royalties. And it involves some of the biggest companies in mining.

What’s happening:

  • LunR Royalties (TSXV: LUNR) has entered into a new deal with Lundin Gold (TSX: LUG) to acquire a life-of-mine silver stream on the Fruta del Norte gold mine located in Ecuador

By the numbers:‍

  • LunR Royalties will pay $670M CAD for the silver streaming deal through issuing 50.5M common shares at a price of $18.18 CAD per share
  • The silver stream covers 100% of payable silver until 12.2M ounces have been delivered

Why it matters:‍

  • The Fruta del Norte gold mine in Ecuador is one of the single highest grade gold mines in the entire world which also contains large scale deposits of silver

Going deeper:‍

  • Lundin Gold has publicly stated they plan to distribute their shares of LunR Royalties to existing shareholders of Lundin Gold and will not hold a passive stake in LunR Royalties following the new deal
  • Newmont (NYSE: NEM) is one of the largest shareholders of Lundin Gold and will end up owning more than 10% of LunR Royalties following the successful closing of the new deal

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