Newcrest (NCM) Ups Stake In Lundin Gold For $79.6m

Newcrest Mining Ltd (ASX: NCM) today announced it has acquired an additional 10.98 million shares in Lundin Gold Inc from Canada’s Kinross Gold Corporation (TSE: K) for $C79.6 million ($88 million).

Newcrest is the largest gold producer listed on the Australian Securities Exchange and one of the world’s largest gold mining companies.

As of 2018, its major operations in New South Wales’ Cadia Valley, Telfer in Western Australia, Gosowong in Indonesia, and Lihir in Papua New Guinea (PNG).

Newcrest Takes Lundin Stake to 32%

Lundin Gold is the owner of the Fruta Del Norte project in Ecuador. The project, Newcrest CEO Sandeep Biswas says, is a Tier 1 underground gold and silver mine.

“This was a great opportunity to increase our exposure to Fruta del Norte, a Tier 1 asset, which is expected to commence commercial production in the June 2020 quarter,” Biswas said via an ASX announcement.

Fruta Del Norte has an expected mine life of 14 years with expected gold production of 315,000 ounces per year.

According to its website, Newcrest’s wide-ranging assets across Australia, Asia and Canada currently boast an average mine life of 25 years.