Lundin Gold closes US $400M financing with Newcrest, Orion, Lundin Family Trusts

Lundin Gold Inc. (TSX/NASDAQ OMX: LUG) has closed its previously announced US $400 million equity private placement, issuing 93,497,140 common shares.

Newcrest Mining Limited (ASX: NCM) invested $250 million while Lundin Family Trusts, Zebra Holdings and Investments S.à.r.l. and Lorito Holdings S.à.r.l. invested $50 million. Orion Mine Finance Group invested $100 million.

Lundin Gold now has 213,163,980 common shares outstanding.

With the closing of the financing, Newcrest now owns 27.1% of Lundin’s outstanding shares; Zebra Holdings and Investments S.à.r.l. and Lorito Holdings S.à.r.l. collectively own 22.3%; and Orion Mine Finance Group owns 11.4%.

BMO Nesbitt Burns Inc., GMP Securities L.P., and Scotia Capital Inc. acted as financial advisors for this transaction. Blakes, Cassels and Graydon L.L.P. acted as legal counsel.

photo credit: Lundin Gold

News Release

LUNDIN GOLD CLOSES US$400 MILLION PRIVATE PLACEMENT

March 26, 2018 (Vancouver, Canada) Lundin Gold Inc. (“Lundin Gold” or the “Company”) (TSX: LUG, Nasdaq Stockholm: LUG) is pleased to announce that it has closed its previously announced US$400 million equity private placement financing (the “Private Placement”). Upon closing, the Company issued 93,497,140 common shares and now has 213,163,980 common shares outstanding.

With the closing of the Private Placement, Newcrest Mining Limited (“Newcrest”) now owns 27.1% of the Company’s outstanding shares; Zebra Holdings and Investments S.à.r.l. and Lorito Holdings S.à.r.l. (the Lundin Family Trusts) collectively own 22.3%; and Orion Mine Finance Group (“Orion”) owns 11.4%.

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 effective today. Mr. 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. Mr. Zollei earned his B.A. from Harvard College in Economics and his MBA from the Wharton School (University of Pennsylvania) in Finance and Management. The Company expects to appoint Newcrest’s two additional directors shortly after closing.

“The completion of this Private Placement is a turning point for Lundin Gold. 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 site, which are both progressing as planned,” said Ron Hochstein, President and CEO of Lundin Gold. “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.”

About Lundin Gold

Lundin Gold, headquartered in Vancouver, Canada, is developing its wholly-owned Fruta del Norte gold project in southeast Ecuador. Fruta del Norte is one of the highest-grade and largest gold projects currently under construction. The Company’s board and management team have extensive expertise in mine construction and operations, and are dedicated to advancing this project through to first gold production in 2019.
The Company operates with transparency and in accordance with international best practices. Lundin Gold is committed to delivering value to its shareholders, while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact. The Company believes that the value created through the development of Fruta del Norte will benefit its shareholders, the Government and the people of Ecuador.

Additional Information

The information in this release is subject to the disclosure requirements of Lundin Gold under the EU Market Abuse Regulation. This information was submitted for publication on March 26, 2018 at 8:15 am PT through the contact persons set out below. For more information, please contact: Lundin Gold Inc. Ron F. Hochstein President and CEO +593-2-299-6400 +1-604-806-3589 Lundin Gold Inc. Sabina Srubiski Manager, Investor Relations +1-604-806-3089 info@lundingold.com www.lundingold.com


Ted Liu
Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal, TechnologyMetals.ca, GoldSilverMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted is President of CPE Media Inc., an independent, trusted and unbiased data provider tracking Canadian VC/PE, private capital industry.
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