INVESTING IN ECUADOR IS A UNIQUE OPPORTUNITY
Negotiation on final terms of the contract for exploitation in Fruta del Norte, between the government and the Company Lundin Gold is complete. On Thursday, during a press conference, Ron Hochstein, CEO at the Canadian company, highlighted the country’s geological potential and affirmed “investing in Ecuador is a unique opportunity in life.” Fruta del Norte (FDN) is a gold field discovered in 2006, located in the province of Zamora Chinchipe. Lundin Gold made an initial investment of 240 million dollars in December 2014 with the aim of strengthening research required to carry out mining activities in the country.
According to Hochstein, “Ecuador is a blessed country in terms of mining (…) Ecuadorians should be proud of the development of a mining industry because it represents a meaningful economic boost.”
Among the main terms of the investment agreement, Lundin Gold committed to pay 65 million dollars in advance royalties of two years starting the date of the signing of the exploitation contract, a payment that will directly benefit inhabitants in Zamora Chinchipe and indirectly all Ecuadorians.
On this matter, Hochstein explained that besides royalties, which benefit the social sector, surpluses or extraordinary profits will go to the pensions’ fund. It is worth mentioning that 50% of the project’s economic benefits, to be done in Ecuadorian land, go to the State.
Lundin Gold’s CEO said he is pleased to work with Ecuador and its people. “47% or I would say 60% of workers come from local communities” and highlighted the country is “rich in education, I’ve never worked with a better team before.”
According to technical reports from Canada’s Securities Law, Fruta del Norte is one of the world’s biggest projects (not developed yet). Its estimated on mineral resources are 7.26 million ounces of gold and 2.55 million ounces of inferred mineral resource. The preliminary investigation phase is expected to conclude in April./ CPB El Ciudadano