TORONTO, Feb. 26, 2018 /CNW/ - Orion Mine Finance announced today that, on February 24, 2018, Orion Co-V Holdings Pte Ltd., a corporation existing under the laws of Singapore and controlled by Orion Mine Finance Management II Limited (collectively, "Orion"), entered into a subscription agreement (the "Subscription Agreement") to purchase 24,213,075 newly issued common shares of Lundin Gold Inc. ("Lundin") at a price of US$4.13 per share for an aggregate subscription price of US$100,000,000 (the "Private Placement"). The Private Placement will be completed as a part of a US$400,000,000 equity private placement by Lundin to Orion, Newcrest Mining Limited, Zebra Holdings and Investments S.a.r.l. and Lorito Holdings S.a.r.l to finance the continued development of the Fruta del Norte gold project in Ecuador (the "Project"). The Private Placement is expected to close on or before March 31, 2018 and is subject to regulatory and other customary approvals, including TSX approval and the filing of a listing prospectus with the Swedish Financial Supervisory Authority.
Prior to the Private Placement, Orion owned no common shares. On completion of the Private Placement, Orion will beneficially own or control 24,213,075 common shares, representing approximately 11.4% of Lundin's issued and outstanding common shares.
Under the terms of the Subscription Agreement, subject to certain ownership thresholds being maintained, Orion will have the right to appoint one member to Lundin's board of directors and participation rights entitling Orion to maintain its pro-rata ownership in the event of future equity issuances.
Orion acquired the common shares for investment purposes. Orion has no current plan or future intentions which relate to, or would result in, acquiring additional securities of Lundin, disposing of securities of Lundin, or any of the other actions requiring disclosure under the early warning reporting provisions of applicable securities laws. Depending on market conditions, Orion's view of Lundin's prospects and other factors considered relevant by Orion, Orion may acquire additional securities of Lundin from time to time in the future, in the open market or pursuant to privately negotiated transactions, or may sell all or a portion of its securities of Lundin.
This news release is being issued under the early warning reporting provisions of applicable securities laws. An early warning rmeport with additional information in respect of the foregoing matters will be filed and made available under the SEDAR profile of Lundin at www.sedar.com. To obtain a copy of the early warning report, you may also contact Limor Nissan, General Counsel of Orion Resource Partners (USA) LP at 212-596-3469. Orion's address is Canon's Court, 22 Victoria Street, Hamilton, Bermuda HM12.
Certain statements in the press release are forward-looking statements and are prospective in nature, including statements with respect to Orion's future intentions regarding the securities of Lundin. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Such forward-looking statements should therefore be construed in light of such factors, and Orion is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE Orion Mine Finance Management I Limited
For further information: Limor Nissan, General Counsel of Orion Resource Partners (USA) LP at 212-596-3469. Orion's address is Canon's Court, 22 Victoria Street, Hamilton, Bermuda HM12.