benzinga118d ago
VANCOUVER, BC, Feb. 22, 2026 /CNW/ - Lundin Gold Inc. (TSX:LUG) (Nasdaq Stockholm: LUG) (OTCQX:LUGDF) ("Lundin Gold" or the "Company") is pleased to announce that it has signed a binding term sheet with LunR Royalties Corp. ("LunR") for a proposed $670 million silver stream–for–equity transaction (the "Transaction"), based on the 20-day volume weighted average price ("VWAP") of the LunR shares on the TSX Venture Exchange ("TSXV") as of February 20, 2026. Under the terms of the Transaction, Lundin Gold will sell a silver stream on the Company's Fruta del Norte ("FDN") mine in Ecuador in exchange for newly issued shares of LunR. Upon closing of the Transaction, subject to compliance with all applicable laws, the LunR shares received by Lundin Gold (the "Consideration Shares") will be distributed to Lundin Gold shareholders as a dividend‐in‐kind as further described below, and Lundin Gold will not hold any LunR shares following completion of such distribution. PDF VersionStrategic RationaleUnlocks value from a minor silver by‐product. Silver currently represents 1–2% of total revenue and is forecast to contribute 500,000 to 600,000 ounces of payable silver in 2026.Delivers immediate value to shareholders through $670 million in LunR equity, based on the 20-day VWAP of the LunR shares on the TSXV as of February 20, 2026.Provides shareholders with meaningful ownership in LunR, enhancing exposure to a high‐growth royalty and metals streaming platform with significant optionality.Positions LunR as a cash‐flowing intermediate streaming company anchored by silver from a Tier‐1 asset.Brendan Creaney, Vice President Corporate Development and Investor Relations commented, "This proposed transaction allows us to unlock significant value for our shareholders while maintaining full gold exposure to the world-class Fruta del Norte mine. 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. LunR's participation in this transaction underscores their confidence in FDN's exceptional quality and its exploration potential to continue delivering silver for many years to come. LunR provides an exciting new royalty and streaming platform, with high quality assets, backed by a strong team. This proposed transaction presents a unique opportunity for our shareholders to participate as owners with direct exposure to both companies." Key Terms of the TransactionUpfront Consideration: LunR will issue 50,505,051 Consideration Shares to Lundin Gold on closing of the Transaction, having a value of approximately $670 million based on the 20-day VWAP of LunR's shares on the TSXV as of February 20, 2026, subject to the satisfaction of certain conditions as described below.Streamed Metal: Lundin Gold will sell 100% of the payable silver production of FDN until 12.2 million ounces have been delivered (the "First Dropdown Threshold"); Lundin Gold will then sell 50% of FDN's payable silver until an additional 7.8 million ounces have been delivered (the "Second Dropdown Threshold"); and thereafter, Lundin Gold will sell 7.5% of the payable silver for the remaining LOM.Ongoing Payments: Lundin Gold will receive payments equal to 10% of the spot price of silver at the time of each delivery for ounces delivered up to the First Dropdown Threshold; payments will then increase to 20% of the spot price for deliveries up to the Second Dropdown Threshold; and thereafter, payments will increase to 30% of the spot price for the remaining LOM.Stream Area: All mining concessions related to FDN's operations, totaling approximately 5,566 ha, are subject to the Stream. See figure 1.Effective Date: The Stream will be effective as of March 1, 2026.Intended Distribution of LunR SharesSubject to satisfactory completion of the closing conditions of the Transaction, as soon as reasonably practicable following the issuance of the Consideration Shares to Lundin Gold on closing of the Transaction, Lundin Gold will distribute all of the Consideration Shares to its shareholders ...Full story available on Benzinga.com
