Lundin Gold completes exploitation agreement for Ecuador project

Thu Jan 14, 2016 11:24am EST
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TORONTO Jan 14 (Reuters) - Lundin Gold Inc said Thursday it will pay the government of Ecuador an advance royalty of $65 million under a fiscal terms agreement to develop its Fruta del Norte project.

A windfall tax will not apply until Lundin has recouped its development investment, said the company, which has negotiated the right to develop and produce gold from the project for 25 years, with renewal rights.

(Reporting by Susan Taylor; Editing by Chizu Nomiyama)