{"id":1153686,"date":"2019-12-05T11:39:49","date_gmt":"2019-12-05T17:39:49","guid":{"rendered":"https:\/\/www.mining.com\/?p=1008531"},"modified":"2019-12-05T11:39:49","modified_gmt":"2019-12-05T17:39:49","slug":"kinross-walks-away-from-promising-ecuador-project-with-lundin-shares-sale","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1153686","title":{"rendered":"Kinross walks away from promising Ecuador project with Lundin shares sale"},"content":{"rendered":"<p>Canadian miner Kinross Gold (TSX:G) (NYSE:KGC)\u00a0is <a href=\"https:\/\/www.kinross.com\/news-and-investors\/news-releases\/press-release-details\/2019\/Kinross-to-sell-Lundin-Gold-shares-for-approximately-CAD150-million\/default.aspx\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">selling its remaining 20.7 million shares<\/a> in Lundin Gold (TSX:LUG), equivalent to a 9.2% stake, to the other two major investors in the Ecuador-focused company, in a deal valued at roughly C$150 million ($114m).<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>The buyers, a wholly-owned subsidiary of Australia\u2019s Newcrest Mining (ASX: NCM) and the Lundin Family Trust, will see their interest in <a href=\"https:\/\/www.lundingold.com\/en\/news\/lundin-gold-reports-increase-in-positions-by-major-122609\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Lundin increase from 27% to 32% and from 23% to 27%<\/a>, respectively.<\/p>\n<p>Kinross said the move was part of its portfolio streamlining<br \/>\nstrategy, which included last week\u2019s <a href=\"https:\/\/www.mining.com\/kinross-gold-sells-portfolio-royalties-to-maverix-metals-for-74m\/\">sale<br \/>\nof its full precious metal royalty portfolio<\/a> to Maverix Metals (TSX:MMX).<br \/>\nIt also noted that the transaction is expected to close immediately.<\/p>\n<p>Lundin, worth C$1.7 billion, owns the Fruta del Norte gold-silver-mine in Ecuador, which <a href=\"https:\/\/www.mining.com\/kinross-gold-allegedly-trying-to-recover-ecuador-mine-losses-51340\/\">it acquired from Kinross\u00a0in 2014<\/a> for $240 million and which <a href=\"https:\/\/www.mining.com\/lundin-kicks-off-production-at-fruta-del-norte-mine-in-ecuador\/\">began production in November<\/a>.<\/p>\n<p>The Vancouver-based miner has been developing the asset for<br \/>\nalmost two years, following a 2016&nbsp;<a href=\"https:\/\/mining.com\/ecuador-grants-lundin-key-permit-for-its-fruta-del-norte-gold-mine\/\"  rel=\"noreferrer noopener\">agreement with Ecuador\u2019s government<\/a>, something its previous<br \/>\nowner was never able to accomplish. The deal allowed Lundin to move ahead with<br \/>\nthe project, located in the southeastern Amazon province of Zamora Chinchipe.<\/p>\n<p>The underground gold and silver mine contains six of the<br \/>\ncompany\u2019s 29 mining concessions in Ecuador and covers 70,000 hectares of land.<br \/>\nDiscovered in 2006, Fruta del Norte is expected to produce almost 4.7 million<br \/>\nounces of gold over a 15 year mine life.<\/p>\n<p>Ecuador has&nbsp;<a href=\"https:\/\/mining.com\/ecuadors-rising-opposition-mining-may-thwart-exploration-boom\/\"  rel=\"noreferrer noopener\">gained ground<\/a>&nbsp;as a mining investment destination over<br \/>\nthe past two years, with top miners entering into joint ventures or investing<br \/>\nin juniors to gain exposure to&nbsp;projects&nbsp;in the country.<\/p>\n<p>Anglo American (LON: AAL) also landed in the South American<br \/>\nnation through a deal with Canada\u2019s Luminex Resources (TSX-V: LR). The company<br \/>\nplans to develop two copper and gold concessions there.<\/p>\n<p>Currently, Ecuador\u2019s emerging mining sector employs 5,000<br \/>\npeople, but&nbsp;estimates the figure will rise to about 16,000 next year if<br \/>\nthe country\u2019s finances don\u2019t take a turn for the worse.<\/p>\n<p>The outlook is dubious, however, as the Congress rejected in<br \/>\nNovember a reform bill presented by President Lenin Moreno, which was part of a<br \/>\n$4.2 billion financing agreement with the International Monetary Fund (IMF).<\/p>\n<p>\u201cThe inconvenient reality is that if Ecuador loses IMF<br \/>\nsupport, then they lose market access,\u201d Siobhan Morden, head of Latin America<br \/>\nfixed income strategy at Amherst Pierpont Securities, wrote in a note.<\/p>\n<p>Moreno\u2019s measures to comply with the IMF program have been<br \/>\ncriticized by the wide range of topics included \u2014 from student debt to mining<br \/>\npolicy and central bank autonomy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It&#8217;s selling its 9.2% stake in the Vancouver-based gold miner equivalent to the other two major investors &mdash; Newcrest and the Lundin Family Trust.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369,4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1153686"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1153686"}],"version-history":[{"count":13,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1153686\/revisions"}],"predecessor-version":[{"id":1154095,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1153686\/revisions\/1154095"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1153686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1153686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1153686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}