Lundin Gold (TSX: LUG) has handed its shareholders direct ownership of a royalty company, distributing 50,505,051 common shares of LunR Royalties Corp (TSX: LUNR) as a dividend in kind on June 11.
Shareholders of record as of June 4 were set to receive roughly one LunR share for every five Lundin Gold shares held, paid out on a pro rata basis. No fractional shares were issued, with entitlements that landed on a fraction rounded down, with the leftover sold for cash.
The distribution amounted to Lundin Gold’s entire position in LunR. The gold producer had picked up the shares on May 28 as payment for a life of mine silver stream on its Fruta del Norte mine in Ecuador, a transaction under which LunR acquired the stream in exchange for issuing the 50.5 million shares.
That left Lundin Gold holding about 41.78% of LunR immediately before the payout. Passing the stock straight through to its own holders leaves it with nothing.
As a result, Lundin Gold no longer counts as a control person of LunR under securities law and has stepped out of the early warning reporting requirements tied to the royalty company. It said it has no current intention to acquire any further LunR securities.
LunR is an emerging royalty and streaming company spun out of NGEx Minerals. Alongside the new Fruta del Norte silver stream, it holds net smelter return royalties on NGEx’s Lunahuasi and Los Helados projects in the Vicuña District.
Lundin Gold last traded at $75.99 on the TSX.
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