Lundin Gold and LunR Royalties have entered into a binding offtake agreement, under which the latter will acquire a life-of-mine silver stream on the Fruta del Norte gold mine in Ecuador for about $670 million in shares.
Under the terms of the transaction, Lundin will acquire approximately 50.5 million of newly issued shares of LunR, the price of which is based on the 20-day volume weighted average at TSXV exchange as of February 20, 2026.
Lundin said in a statement that the deal will help unlock value from silver, mined at the project as a minor by‑product. It currently represents 1% - 2% of total revenue and is forecast to contribute 500,000 to 600,000 ounces in 2026.
"By converting a small by-product into an equity interest in a rapidly emerging royalty company, we are crystallizing value now and creating a new avenue of long-term value for our shareholders," said Lundin Gold vice president for corporate development Brendan Creaney.
"LunR provides an exciting new royalty and streaming platform, with high quality assets, backed by a strong team."
Lundin will sell 100% of silver produced at the Fruta del Norte to LunR until 12.2 million ounces have been delivered, after which it will sell 50% of output for an additional 7.8 million ounces. Thereafter, it will sell 7.5% of the silver to LunR for the remaining life of mine. The company will receive additional payments in the amount of 10%, 20%, and 30% of the spot silver price in accordance with aforementioned thresholds.
Theodor Lisovoy, Managing Editor, Rough&Polished
