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Canadian mining company Lundin will exploit Fruta del Norte project in Ecuador
Posted On 15 Jan 2016
Ecuador and the Canadian company Lundin Gold announced Thursday an agreement for the exploitation of largest gold project in the Andean country, Fruta del Norte, which will require an investment of 1,000 million dollars until 2018.
The country, whose mining sector is artisanal, has significant reserves of gold, silver, copper and other minerals so it is aimed to develop an industry with the participation of foreign companies.
Fruta del Norte, located in the Amazonian province of Zamora Chinchipe, has estimated reserves of more than 7.3 million ounces of gold and 9.7 million ounces of silver, according to official data.
The agreement includes a commitment by Lundin Gold of paying royalties of 5 percent of net profits to the Ecuadorian Government and will make an outlay of 65 million dollars through anticipated royalties (two years) to benefit the area of influence, said the company in a statement.
