Kinross Gold Exits Ecuador Project, Sells Remaining Stake in Lundin Gold

SEATTLE (Scrap Monster): Canadian mining major Kinross Gold announced its decision to sell its remaining stake of 20,656,250 shares in Lundin Gold Inc. This marks the exit of the miner from Ecuador mining project. The deal is valued at around $114 million. The transaction is expected to close immediately, on or before December 9, 2019.

The sale is considered to be part of Kinross’ strategy of streamlining its portfolio of assets, with the aim of further strengthening its balance sheet.

According to reports, the buyers are the Lundin Family Trust and a wholly-owned subsidiary of Australia’s Newcrest Mining. The purchase will lift NewCrest Mining subsidiary’s interest in Lundin from 27% to 32%. Also, Lundin Family Trust’s interest will increase by 4% to 27%.

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It must be noted that Lundin had acquired the Fruta del Norte gold-silver-mine in Ecuador in 2014 for $240 million in a cash and share deal. The transaction comprised of $150 million in cash and 26.2 million common shares of Lundin Gold.  Lundin had commenced production from the mine in November this year.