Lumina Gold Reached Agreement with Ecuador on Cangrejos Mining Contract

SEATTLE (Scrap Monster): In order to complete the exploitation contract for its fully-owned Cangrejos gold-copper mine in Ecuador's El Oro province, Canadian miner Lumina Gold announced that it has signed a legally binding term sheet with the Ecuadorian government.

The deal stipulates that a $25 million advance royalty payment will be made in four installments. When the exploitation contract is signed in 2025, the $2.5 million down payment will be made. According to the corporate press statement, the next three installments, totaling $7.5 million each, will be made at the beginning of construction, one year later, and the end of the second year, respectively.

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According to the pricing of the corresponding metals, the royalty rates for the production of gold, silver, and copper will range from 3% to 8%. The pre-feasibility study conducted by the corporation last year is consistent with the royalty terms. By the way, the project's feasibility study is anticipated to be completed in the second quarter of next year.

Marshall Koval, the CEO and director of Lumina, commented on the milestone, saying that the agreement is a significant step for Ecuador and the project. He expressed gratitude to all local stakeholders and government authorities for their support of the initiative thus far.