Lumina Gold Paves Way for Major Project in Ecuador

Lumina Gold, a Canadian mining company, has reached a binding agreement with the Ecuadorian government on the final terms of the mining contract for its Cangrejos gold-copper project. The project, located in El Oro Province, is considered the largest primary gold deposit in Ecuador and promises enormous economic opportunities for the country and the company. The contract terms include an advance royalty payment totaling 25 million USD, spread over four installments. The first payment of 2.5 million USD will be made upon signing the mining contract in 2025. Further payments are tied to construction progress in the following two years. The royalty rates for the production of gold, copper, and silver range from 3% to 8%, depending on the respective metal prices, and are intended to ensure that the Ecuadorian government receives at least 50% of the cumulative discounted benefits from the project. Marshall Koval, CEO and Director of Lumina, described the agreement as a significant advancement for both the Cangrejos project and Ecuador. He emphasized that the royalties align with the 2023 feasibility study and position the project well for the upcoming study in the second quarter of 2025. The agreement also provides protection against economic imbalances due to potential legal changes, offering Lumina security regarding the future economic framework. Lumina plans to change the project status from exploration to mining in the next steps and has a six-month window for contract execution upon receiving approval. An environmental license is also required, with applications expected to be completed in 2025. Furthermore, the agreement with the Ecuadorian government fulfills a condition of the precious metal purchase agreement with Wheaton Precious Metals International and secures financing for a remaining advance payment of 6 million USD by December 2. Already in May 2023, Wheaton had signed a 300-million-dollar streaming deal to purchase products from the Cangrejos project.