The loss increases in Lundin Gold – Swedish Dagbladet

Here is seen the gold melted down. Photo: Rich Pedroncelli / AP Photo

The loss increases compared with last year’s second quarter is explained by the company with increased costs for the feasibility study in progress at Fruta del Norte project in Ecuador, as well as increased general and administrative expenses.

The company had at the end of June a cash balance of $ 47.9 million.

Lundin Gold bought at the end of 2014 the deposit Fruta del Norte, located in southeastern Ecuador, for a total of $ 240 million, nearly 1.8 billion. Fruta del Norte is described as one of the largest and highest-grade gold projects in the world. No production has not yet started.

During the quarter, opened discussions with the Ecuadorian government with the intention of the end of the year to reach an agreement on the conditions for gold extraction.

Company report also progress with the feasibility study in progress.

– We are pleased with the progress made with the feasibility study and are optimistic about being able to define the terms of the production agreement, said CEO Ron Hochstein.