Lumina Gold gets $300 million in funding in exchange for gold

Chicago, May 16 – Lumina Gold Corp. entered into an agreement on Tuesday for $300 million of funding from Wheaton Precious Metals International Ltd., a wholly owned subsidiary of Wheaton Precious Metals Corp., according to a press release.

The funding will be split into $48 million of pre-construction funding for Lumina’s 100% owned Cangrejos gold-copper project located in El Oro province, Ecuador and $252 million of construction funding.

The pre-construction funding will be given in increments of $12 million at closing, $10 million after close, $15 million one year after close and an $11 million tranche that can be drawn for specific pre-construction capital items.

The $252 million upfront payment will be funded throughout the two-and a-half-year construction period for the project.

In return for the early deposit and upfront payment, Lumina will sell 6.6% of the payable gold production from the project until 700,000 ounces of gold have been delivered, at which point the agreement will be reduced to 4.4% of the payable gold production.

Wheaton will pay a production payment representing 18% of the spot price of gold for the first 700,000 ounces and 22% of the spot price of gold thereafter.

In the event of a change of control, the company may buy back one-third of the metals streaming agreement from Wheaton until the earlier of Jan. 1, 2030 and the date that is 12 months after first production.

Lumina is a Vancouver, B.C.-based precious and base metals exploration and development company focused on the Cangrejos Gold-Copper Project located in El Oro Province, southwest Ecuador.

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