16 Dec Lundin Gold signs key agreement to progress Fruta del Norte
Lundin Gold (TSX:LUG) has signed an agreement with the Ecuadorian Government to progress its Fruta del Norte gold mine.
The two partners inked an exploitation agreement to validate Lundin’s plans to build an underground mine and a processing facility at the site in Zamora Chincipe.
The agreement allows Lundin to develop and produce gold at Fruta del Norte for the next 25 years, the Vancouver-based company will also have to pay US$65 million in royalties to the Ecuadorian Government plus 5% of addition net smelter revenues.
“I’m very happy to be in Ecuador for the execution of this important agreement. In just under two years, working cooperatively with the Government of Ecuador, we have negotiated this key agreement and completed the feasibility study for FDN, paving the way for the development of this world-class asset,” stated Lukas Lundin, chairman of Lundin Gold.
The Ecuadorian Government is opening its door to foreign mining companies in a bid to attract investment and develop its mining industry.
Ron Hochstein, Lundin Gold president and CEO, said: “For Lundin Gold, this event signals the company’s commitment to growing the company in Ecuador by moving towards the development of and achieving commercial production at FDN. For Ecuador, the signing of the exploitation agreement brings opportunity for jobs and economic development at both the local and national levels and shows the country’s commitment to mining.”