Lundin Gold secures $46M credit facility

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By Ted Liu

Lundin Gold Inc. (TSX/OMG: LUG) has secured a US $35 million or CDN $46 million credit facility from Zebra Holdings and Investments S.à.r.l. of Luxembourg, an insider of Lundin Gold and a company owned by a trust whose settlor was the late Adolf H. Lundin. The financing closed on January 16, 2017.

The unsecured debenture will accrue interest at 5% per annum commencing on the maturity date or upon the occurrence of an event of default. The debenture is due on the earlier of the closing of a financing by Lundin Gold or May 31, 2017.

Subject to TSX approval, Lundin Gold will issue 60,000 common shares as consideration for the facility in lieu of fees. It will also issue an additional 1,700 shares per month for each $1 million of the facility drawn down and outstanding until the maturity date.

photo credit: Lundin Gold