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by Stockwatch Business Reporter

New York spot gold rose $16.10 to $2,331.30 on Thursday. The TSX Venture Exchange rose 3.68 points to 578.33, while the TSX gold index leapt 12.55 points to 319.17. Most Canadian-listed gold miners surged higher today. Newmont Corp. (NGT) jumped $6.39 to $59.26 on 1.54 million shares on word it earned $179-million (U.S.) in its first quarter.

The Lundin family and Ron Hochstein's Lundin Gold Inc. (LUG) rose 48 cents to $19.35 on 607,000 shares on word it is buying out a stream credit facility and offtake agreement covering its Fruta del Norte mine in Ecuador, paying $330-million (U.S.) to Newmont Corp. The arrangements were created seven years ago as part of the financing of construction of the mine. This is a renegotiation, as Lundin could have paid $150-million (U.S.) at the end of June for half the stream and $225-million (U.S.) in mid-2026 for the other half.

Mr. Hochstein, president and chief executive officer, was pleased to reveal the repurchase, noting that once complete, "Lundin Gold will have repaid in full all of its project finance debt only four years after achieving commercial production at Fruta del Norte." And so, Lundin will be "debt-free and have increased exposure to rising gold prices," he cheers, deftly dodging the equally plausible possibility of increased exposure to declining gold prices. No matter -- with the stream and offtake gone, Lundin Gold will have increased cash flow to support new capital initiatives, Mr. Hochstein concludes, "including further growth and shareholder returns."

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