Lundin Gold Announces $670 Million Silver Stream-for-Equity Transaction with LunR Royalties

Executive Summary

• Lundin Gold has signed a binding term sheet for a $670 million silver stream‑for‑equity transaction with LunR Royalties, converting the Fruta del Norte mine’s payable silver into newly issued LunR shares.
• Up to 100% of payable silver will be streamed until 12.2 M oz are delivered (first tier), then 50% up to an additional 7.8 M oz, and finally 7.5% for the remaining life‑of‑mine; payments to Lundin Gold increase from 10% to 30% of spot silver price across tiers.
• Upon closing (expected Q2 2026), LunR will issue ~50.5 million shares valued at ~$670 M, which Lundin Gold will distribute to its shareholders as a dividend‑in‑kind (subject to jurisdictional restrictions).

Key Details

• Upfront Consideration: 50,505,051 LunR shares (~$670 M based on 20‑day VWAP of LunR TSXV price as of Feb 20 2026).
• Streamed Metal Terms:
• Tier 1 – 100% of payable silver until 12.2 M oz delivered (First Dropdown Threshold).
• Tier 2 – 50% of payable silver for the next 7.8 M oz (Second Dropdown Threshold).
• Tier 3 – 7.5% of payable silver for the remainder of the mine’s life‑of‑mine.
• Payment Structure:
• Tier 1 – Lundin receives 10% of spot silver price per ounce delivered.
• Tier 2 – Payment rises to 20% of spot price.
• Tier 3 – Payment rises to 30% of spot price.
• Effective Date of Stream: March 1 2026.
• Distribution Mechanics: Consideration Shares will be distributed to Lundin shareholders as a dividend‑in‑kind, except where prohibited (e.g., U.S.); affected shareholders will receive cash proceeds from the sale of those shares.
• Regulatory & Closing Conditions: Subject to due diligence, definitive agreements, approvals by both boards, TSX Venture Exchange, LunR shareholders, and receipt of a prospectus final receipt; expected closing in Q2 2026.
• Strategic Rationale: Monetizes 1–2% silver by‑product (≈500k–600k oz in 2026) while retaining full gold exposure; provides shareholders with direct ownership in a high‑growth royalty/streaming platform.

Notable Quotes

“This proposed transaction allows us to unlock significant value for our shareholders while maintaining full gold exposure to the world‑class Fruta del Norte mine.” – Brendan Creaney, Vice President Corporate Development & Investor Relations, Lundin Gold.