en.Wedoany.com Reported - Lundin Gold Inc. has completed the silver stream share exchange transaction with LunR Royalties and distributed the acquired shares as a special dividend to shareholders. The transaction was completed on May 28, 2026, with Lundin Gold receiving a total of 50,505,051 common shares of LunR Royalties in exchange for granting LunR a silver stream interest over the mine life of the Fruta del Norte gold mine in Ecuador. The Board of Directors of Lundin Gold has declared a pro-rata distribution of all LunR shares in kind to eligible shareholders.
Lundin Gold Inc. (TSX:LUG) is a mining company headquartered in Vancouver, Canada, holding approximately 27 metal mineral concessions in southeastern Ecuador, with its core asset being the 100%-owned Fruta del Norte gold mine. The mine commenced production in late 2019 and is one of the world's highest-grade operating gold mines, with proven and probable reserves of 5.85 million ounces of gold, 25.66 million tonnes of ore, and a grade of 7.09 grams per tonne. LunR Royalties (TSX-V:LUNR) is a precious metals royalty and streaming company headquartered in Vancouver, focused on acquiring stream interests in high-grade mines, and was spun out from NGEx Minerals in October 2025. A silver stream is a mining financing model where a streaming company provides upfront capital to a mine operator in exchange for the right to purchase a fixed percentage of silver production at a discounted price over the entire mine life.
Under the terms of the transaction, this silver stream covers 100% of the payable silver production over the mine life of the Fruta del Norte gold mine and will phase down after reaching specific delivery thresholds. The transaction was finalized with a definitive agreement signed in April 2026, based on a binding term sheet reached on February 22, 2026, with final terms largely consistent with previously disclosed information. The Board of Directors of Lundin Gold has declared a special in-kind dividend payable on June 11, 2026, to shareholders of record as of the close of trading on June 4, 2026, with approximately one LunR share for every five Lundin Gold shares held.
Due to securities regulations in the United States and certain other jurisdictions, LunR shares will not be directly distributed to shareholders in those regions; affected shareholders will receive net cash proceeds from the sale of their shares (after applicable taxes and fees). Following the distribution, Lundin Gold no longer holds any LunR shares and is no longer considered a controlling person. Through this transaction, Lundin Gold acquired beneficial ownership of approximately 41.78% of LunR's issued shares on an undiluted basis. The completion of this transaction provides LunR with a silver stream asset from a high-grade gold mine, offering a stable source of long-term cash flow.
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