Vancouver-based Lundin Gold has closed its previously announced US$400m equity private placement financing after issuing 93,497,140 common shares.
With the closing of the private placement, Newcrest Mining Limited now owns 27.1% of the Lundin Gold's outstanding shares, Zebra Holdings and Investments and Lorito Holdings collectively own 22.3% and Orion Mine Finance Group takes the 11.4%.
Lundin Gold president and CEO Ron Hochstein said the completion of this private placement is a turning point for the firm.
"This investment significantly reduces risks around the funding of the project and represents a strong endorsement for Fruta del Norte and our management team. Our focus is currently on underground mine development and construction at the site, which are both progressing as planned,” Hochstein said.
Both Newcrest and Orion have board representation rights tied to their ownership position.
The board of directors has appointed Orion’s nominee, Istvan Zollei, as a director. Zollei is a portfolio manager with Orion and previously was an investment manager with another mine finance group. Prior to this, he worked at Barclay Capital’s natural resource private equity investment group, with responsibility for investments in the mining, oil/gas and power sectors.
He started his career at Lehman Brothers’ investment banking division. Zollei earned his B.A. from Harvard College in Economics and his MBA from the Wharton School (University of Pennsylvania) in Finance and Management. Lundin Gold expects to appoint Newcrest’s two additional directors shortly after closing.
Hochstein said: "I would also like to welcome Istvan to the board. His experience in the mining sector and international finance will be an asset to the board as we continue to develop the project and grow the Company into a mid-tier gold producer.”
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