Lundin Gold (TSX:LUG) has closed its silver stream-for-equity transaction with LunR Royalties, distributing the acquired shares as a special dividend.
The company completed the transaction on 28 May, receiving 50,505,051 LunR Royalites (TSX-V:LUNR) common shares in exchange for granting LunR a life-of-mine silver stream on the Fruta del Norte gold mine in Ecuador.
Lundin Gold’s board has declared a special dividend-in-kind to distribute all LunR shares to eligible shareholders on a pro rata basis.
Each eligible shareholder will receive approximately one LunR share for every five Lundin Gold shares held.
The dividend will be payable on 11 June to shareholders of record at the close of business on 4 June. No fractional shares will be distributed, with fractional entitlements rounded down and sold for cash proceeds.
Shareholders in the United States and other jurisdictions where distribution would be restricted will receive cash payments equal to net proceeds from the sale of their allocated shares, less applicable taxes.
The transaction gives Lundin Gold an approximately 41.78% beneficial ownership of LunR’s issued shares on an undiluted basis.
Following completion of the dividend payment, Lundin Gold will not hold any LunR shares and will not be considered a control person.
Write to JC Villarba at Mining.com.au
Images: Lundin Gold
