Lundin Gold (TSX:LUG) has signed a binding term sheet with LunR Royalties Corp (TSX-V:LUNR) for a proposed C$670 million ($692.6 million) silver stream-for-equity transaction.
Under the transaction, Lundin Gold will sell a silver stream on the Fruta del Norte Mine in Ecuador in exchange for newly issued shares on LunR Royalties. The LunR Royalties’ shares will be based on a 20-day volume weighted average price of the LunR shares on the TSX, as of 20 February 2026.
Lundin Gold will sell the payable silver production of Fruta del Norte until 12.2 million ounces have been delivered. The company will sell half of the payable silver until an additional 7.8 million ounces have been delivered, and thereafter, will sell 7.5% of the payable silver for the remaining mine life.
Vice president of corporate development and investor relations Brendan Creaney says by converting a small by-product into an equity interest in a rapidly emerging royalty company, the company is crystallising value now and creating a new avenue of long-term value.
“LunR’s participation in this transaction underscores their confidence in Fruta del Norte’s exceptional quality and its exploration potential to continue delivering silver for many years to come,” Creaney says.
“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.”
The transaction is expected to close, subject to certain conditions, in Q2 2026.
Silver climbed nearly 3% to around US$87 an ounce at the beginning of this week, extending gains to a fourth session as renewed tariff tensions boosted demand for safe-haven assets.
Over the past month, the precious metal’s price has fallen 17.42%, but is still 165.98% higher than a year ago, according to Trading Economics.
LunR Royalties is an emerging royalty and streaming company based in Canada.
Lundin Gold is a gold-focused developer and producer which wholly owns the Fruta del Norte Mine in southeast Ecuador.
Write to Aaliyah Rogan at Mining.com.au
Images: Lundin Gold
