Lumina Gold Corp (TSX-V:LUM, OTCQX:LMGDF) said it has successfully drawn down a total of US$16.7 million under its US$300 million precious metals purchase agreement (PMPA) with Wheaton Precious Metals International Ltd., a wholly owned subsidiary of Wheaton Precious Metals Corp (LSE:WPM, TSX:WPM, NYSE:WPM).
The draw, comprising two tranches, marks a significant milestone in Lumina's strategic financing and project development.
The first tranche, totaling US$10 million, was disbursed six months after the initial draw in May 2023. Additionally, US$6.7 million from the draw is earmarked for specific pre-construction acquisition transactions.
Earlier this year, Lumina completed a pre-feasibility study for Cangrejos, the largest primary gold deposit in Ecuador.
The financing will go towards resource definition and metallurgical drilling, slated to conclude in December to support an upcoming feasibility study.
The US$10 million draw will fund activities until the next tranche from Wheaton in May 2024, CEO Marshall Koval told shareholders.
Lumina is “extremely pleased” to be wrapping up resource definition and metallurgical drilling, the CEO added.
Based in Vancouver, Lumina is focused on the Cangrejos gold-copper project in El Oro province, southwest Ecuador.