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Tobar ZVS advised LunR Royalties Corp. in connection with the successful completion of its acquisition of a life-of-mine silver stream over the Fruta del Norte mine, one of the world’s highest-grade operating gold mines and a cornerstone asset of Ecuador’s mining industry.
The transaction was completed between LunR Royalties Corp., Lundin Gold Inc. and Aurelian Resources Inc., the entity holding the Fruta del Norte mining operation. Under the transaction, LunR acquired the life-of-mine silver stream in exchange for the issuance of approximately 50.5 million common shares, which Lundin Gold subsequently distributed to its shareholders through a dividend-in-kind structure.
Tobar ZVS served as Ecuadorian counsel to LunR and worked closely with Canadian counsel Cassels on all Ecuadorian law aspects of the transaction. The firm’s role included advising on the structuring of the transaction from an Ecuadorian law perspective, preparing and reviewing transaction documentation, conducting legal due diligence, assisting with the interpretation and application of Ecuadorian mining, corporate and regulatory laws, issuing legal opinions, and coordinating with opposing counsel throughout the negotiation and closing process.
The Tobar ZVS team was led by Senior Partner César Zumárraga, Head of Energy, Infrastructure & Natural Resources, together with Partner Juan Fernando Larrea and Legal Director Andrés Paz y Miño, alongside the firm’s broader Energy, Infrastructure and Natural Resources team.
The transaction represents another significant milestone for Ecuador’s mining sector and highlights the increasing sophistication of financing and investment structures being deployed in the country. Royalty and streaming transactions have become an increasingly important source of capital for the global mining industry, and the successful completion of a life-of-mine stream involving Fruta del Norte further demonstrates the confidence of international investors in Ecuador’s mining assets and long-term growth prospects.
Fruta del Norte is widely recognized as one of the most important mining operations in Latin America and has played a central role in the development of Ecuador’s modern mining industry. The transaction reinforces Ecuador’s position as an attractive destination for international mining investment and innovative financing solutions, while also evidencing the growing maturity of the country’s legal and regulatory framework for large-scale mining projects.
For more than three decades, Tobar ZVS has advised on many of the most significant mining projects and transactions in Ecuador, including project development, financing, M&A transactions, regulatory matters and strategic investments involving domestic and international mining companies, investors and financial institutions.
For more information on Tobar ZVS and our legal services, please visit our website at www.tzvs.ec