Fruta Del Norte / Lundin Gold

Structure and arrangement of project financing for the construction of the Fruta del Norte Project in Ecuador.


Transaction Amount

Endeavour advised Lundin Gold on the financing of the US$750 million Fruta Del Norte Gold Project in Ecuador. It is among the largest and highest grade undeveloped gold projects in the world.

Comprehensive role advising the project sponsor including:

  • Developing financing plan, contractual structure and technical assistance
  • Managing independent consultants
  • Negotiations with offtakers / smelters, in conjunction with financing solution
  • Negotiations with third party finance providers
  • ECA (Finnvera) arrangement and negotiation
  • Financial modelling, term sheets and document negotiations
  • Long development and ramp-up period
  • Intercreditor relations and multiple sources of funding
  • Country risk
  • Early engagement to negotiate mining and stability agreements with Government to ensure fully bankable
  • Employed a multi-tranche and phased financing approach as the project de-risked through the engineering and development
  • Initial US$300m stream loan and gold prepay facility (+ US$100m equity commitment) was structured to allow the senior debt to be brought in at a later date
  • Used offtake to underpin Finnish Government support through the Finnvera Raw Materials Guarantee scheme
  • Senior debt facility consisted of a seven bank + Finnvera club for US$350m which was signed in July 2018

Key Contact

Paul Stevens


David Rhodes

Managing Director