LunR Royalties Establishes Credit Facility of up to $150 Million
LunR secures $150m in RCF funding to support its M&A strategy and silver ramp-up at the FDN project.
LunR Royalties Corp. announced the establishment of a $150 million Revolving Credit Facility (RCF) with National Bank of Canada and ING Capital LLC. The facility provides $100 million in immediately available liquidity, with a $50 million accordion feature subject to certain conditions.
Terms include a three-year maturity (August 2029), interest rates of term SOFR plus 2.25% to 3.25%, and a standby fee of 0.51% to 0.73% on undrawn funds. Proceeds are designated for future acquisitions and general corporate purposes.
CEO Adam Lundin framed the facility as a strategic enabler for "non-dilutive funds" to support portfolio expansion, citing recent progress including the Fruta del Norte (FDN) stream acquisition and TSX graduation.
LunR Royalties Corp. has secured a credit facility, a standard step for the capital-light royalty company following its $670 million acquisition and as it positions for further mergers and acquisitions. The financing provides necessary liquidity to execute its growth strategy without immediate equity dilution, aligning with management’s repeated emphasis on using non-dilutive funds and the company’s established capital-light model.
The market has already priced in the company's transition to a producing asset, as evidenced by the stock's decline from its March 2026 peak of $30.89 to the current ~$19.24 level. The financing does not alter the fundamental thesis but serves to support the stated growth strategy. The move was telegraphed by management and does not represent a surprise catalyst.
LunR Royalties Corp. is a Canadian-based emerging royalty and streaming company spun out of NGEx Minerals. The firm targets the intermediate royalty space, defined as companies with a market capitalization between $2 billion and $10 billion, with a focus on precious metals.
Its core asset is a life-of-mine silver stream on the Fruta del Norte mine in Ecuador, which was acquired for $670.2 million in shares. The company also holds exploration assets, including a 1.00% NSR royalty on Lunahuasi in Argentina and a 1.38% NSR royalty on Los Helados in Chile.