Newmont gets shares of Lunr Royalties by way of dividend-in-kind

Newmont Corporation (NYSE: NEM) has become a major shareholder in LunR Royalties Corp. (TSXV: LUNR) following a dividend-in-kind distribution of LunR shares to Lundin Gold Inc. (TSX: LUG) shareholders. This outcome stems from LunR’s acquisition of a life-of-mine silver stream on the Fruta Del Norte gold mine in Ecuador, valued at approximately $670 million.

Under the terms of the agreement, LunR issued 50.5 million shares as consideration to Lundin Gold for the silver stream. Lundin Gold subsequently distributed these shares to its shareholders as a dividend-in-kind. As a result, Newmont, which holds a 32% stake in Lundin Gold, received a significant portion of the shares and owns more than 10% of LunR following the distribution.

The dividend-in-kind was declared on May 28, 2026, with shares distributed on June 11, 2026, to shareholders of record as of June 4, 2026. Shareholders in jurisdictions where the distribution was restricted received cash proceeds from sale of their allocated shares.

This transaction marks a strategic shift for LunR, positioning it as a prominent player in the precious metals royalty and streaming sector. The addition of the silver stream from Fruta Del Norte, a high-grade gold and silver mine, is expected to provide long-term cash flow and growth potential.

Newmont’s increased stake in LunR aligns with broader industry trends of cross-holding and collaboration among major mining entities and royalty companies. The move also underscores the growing importance of royalty and streaming models in the mining sector, offering diversified revenue streams and reduced operational risk.