LunR Royalties Inks $670M Silver Deal, Forging a New Path in Mining

VANCOUVER, BC – April 03, 2026 – LunR Royalties Corp. has solidified its rapid ascent in the mining finance world, signing definitive agreements with Lundin Gold for a life-of-mine silver stream on the prestigious Fruta del Norte mine in Ecuador. The transaction, valued at approximately $670 million, finalizes terms first announced in February and marks a pivotal moment for the fledgling royalty company.

Under the terms of the deal, LunR will issue 50,505,501 of its common shares to Lundin Gold. In a strategic move to directly reward its investors, Lundin Gold will then distribute these shares to its own shareholders as a dividend-in-kind. This complex, all-equity transaction underscores a growing trend of creative value creation within the resource sector, allowing a major producer to monetize a by-product while catapulting a junior streaming company into a new league.

A Transformational Leap for an Emerging Player

For LunR Royalties, this acquisition is nothing short of transformational. Spun out of NGEx Minerals in just October 2025 with royalties on two development projects, LunR is now poised to become an intermediate cash-flowing entity. The deal provides immediate exposure to a high-quality, long-life asset known as one of the world's highest-grade operating gold mines.

The structure of the silver stream is designed for significant upside. LunR will receive 100% of the payable silver from Fruta del Norte until 12.2 million ounces are delivered. The stream then shifts to 50% of payable silver for the next 7.8 million ounces, before settling at 7.5% for the remainder of the mine's life. With Lundin Gold forecasting 500,000 to 600,000 ounces of payable silver in 2026 alone, the deal promises immediate and substantial revenue for LunR, accelerating its growth trajectory years ahead of schedule.

This acquisition fundamentally alters LunR's profile, providing the scale and cash flow necessary to compete for larger and more diverse royalty and streaming opportunities in the future. It moves the company from holding interests in future projects to generating revenue from a proven, world-class operation.

Strategic Monetization and Shareholder Rewards

From Lundin Gold's perspective, the transaction is a shrewd strategic play. Silver represents only 1-2% of the total revenue from the gold-dominant Fruta del Norte mine. This deal allows the company to unlock the value of this non-core by-product at a favorable valuation without taking on debt or diluting its shareholders' primary exposure to gold.

More notably, the structure ensures the value flows directly to its investors. By distributing the 50.5 million LunR shares as a dividend, Lundin Gold's shareholders will gain direct ownership in a newly fortified and growth-oriented precious metals streaming company. Following the distribution, Lundin Gold will not retain any equity in LunR, ensuring a clean separation and preventing it from becoming a 'control person' of the smaller firm.

This innovative dividend-in-kind mechanism serves as a model for how major producers can monetize secondary assets to create immediate shareholder value while maintaining focus on their core operations. It also provides Lundin Gold's investors with a new, distinct investment vehicle focused on the royalty and streaming model.

Navigating the Intricacies of a Related-Party Deal

Given that LunR Royalties was spun out from a company within the broader Lundin Group ecosystem, the transaction is classified as a 'related party transaction' under Canadian securities regulations. This designation triggers stringent governance protocols to protect the interests of minority shareholders.

To ensure fairness and transparency, both LunR and Lundin Gold established special committees of independent directors to evaluate the deal. LunR's special committee received a fairness opinion from BMO Capital Markets, which concluded that the consideration being paid by the company is fair from a financial point of view. Both independent committees unanimously recommended the transaction to their respective boards.

The ultimate decision, however, will rest with LunR's shareholders. The deal requires approval from a simple majority of votes cast by disinterested shareholders at the company's upcoming Annual General and Special Meeting, scheduled for May 21, 2026. This 'majority of the minority' vote is a critical safeguard designed to prevent any potential conflicts of interest and ensure the transaction is beneficial to all shareholders, not just the related parties.

The transaction, expected to close in the second quarter of 2026, still hinges on this shareholder vote, as well as final approval from the TSX Venture Exchange and the issuance of a final receipt for a prospectus qualifying the share issuance. All eyes will now be on the company's special meeting in May, a pivotal moment that will determine the final trajectory of this ambitious transaction and LunR Royalties' place in the sector.