Vancouver-based Lundin Gold has drawn $159-million under its previously announced senior secured debt facility to advance the development of the Fruta del Norte gold project, in Ecuador.
The company now has $191-million remaining under the facility available to be drawn at its option.
Lundin also entered into a $75-million cost overrun facility (COF) with Nemesia, a company which the project developer said was owned by a trust whose settlor was the late Adolf H. Lundin.
Entering into the COF was a condition precedent to first draw under the facility. It is available once the facility is fully drawn and can only be used to fund a potential cost overrun related to the development of the project.
Lundin issued Nemesia 300 000 common shares and 300 000 warrants in lieu of fees.
The Lundin Family Trust now holds 51 721 852 shares, representing 23.3% of Lundin Gold's outstanding shares.