Newcrest’s Acquisition of Lundin Gold’s Fruta del Norte Mine finance facilities


McCarthy Tétrault, Bustamante & Bustamante and Lexim Abogados advised on the transaction

Newcrest Mining Limited has acquired the project financing package provided to Lundin Gold’s Fruta del Norte mine in Ecuador by Orion Mine Finance Group and funds managed by Blackstone Tactical Opportunities.

The Orion and Blackstone project financing package, which was put in place in 2017, is comprised of a gold prepay credit facility for $150 million, a stream loan credit facility of $150 million and an offtake agreement for 50% of gold production from Fruta del Norte, up to a maximum of 2.5 million ounces. The gold prepay and stream facilities were fully drawn by Lundin Gold by early 2018 to fund the development of Fruta del Norte.

Newcrest Mining Limited is a gold mining, exploration and production company. The Company, led by Sandeep Biswas and Gerard Bond is geographically focused in Australia, the Pacific region and Asia.

Lundin Gold Inc. is a Canadian mining company. The Company, led by Lukas Henrik Lundin and Ronald F Hochstein owns and operates gold projects located in southeast Ecuador.

In Ecuador, Bustamante & Bustamante advised Newcrest Mining Limited with Roque Bernardo Bustamante (Picture), Alfredo Larrea, Galo Sánchez, Sebastián Corral, Claudia Bustamante and Julio Olmedo.

In Canada, McCarthy Tétrault advised Newcrest Mining Limited with Shea T. Small, Eva Bellissimo, Jake Irwin, Raj Juneja, Patrick Deutscher, Ainslie Hurd and William Lee.

Lexim Abogados advised Lundin Gold Inc. with Rodrigo Borja Calisto.

Involved fees earner: Roque Bernardo Bustamante – Bustamante & Bustamante; Claudia Bustamante – Bustamante & Bustamante; Sebastián Corral – Bustamante & Bustamante; Alfredo Larrea – Bustamante & Bustamante; Julio Olmedo – Bustamante & Bustamante; Galo Sánchez – Bustamante & Bustamante; Rodrigo Borja Calisto – LeximAbogados; Eva Bellissimo – McCarthy Tétrault; Patrick Deutscher – McCarthy Tétrault; Ainslie Hurd – McCarthy Tétrault; Jake Irwin – McCarthy Tétrault; Raj Juneja – McCarthy Tétrault; William Lee – McCarthy Tétrault; Shea Small – McCarthy Tétrault;

Law Firms: Bustamante & Bustamante; LeximAbogados; McCarthy Tétrault;

Clients: Lundin Mining Corporation; Newcrest Mining Limited;

Author: Ambrogio Visconti.