Newcrest buys stake in Ecuador gold mine

Newcrest Mining is investing $A318.8 million to acquire a 27.1 per cent stake in Lundin Gold, which is developing the Fruta del Norte gold mine in Ecuador.

One of the mines operated by Newcrest Mining, which is buying a stake in an Ecuador gold mine. (AAP)

Gold miner Newcrest has agreed to buy a 27.1 per cent stake in Toronto-listed Lundin Gold for $US250 million ($A318.8 million).

Newcrest will acquire 57.7 million common shares in Lundin Gold as part of a $US400 million private placement financing by the Canadian-based miner for the development of its Fruta del Norte gold mine in Ecuador.

Under the agreement, Newcrest has the right to appoint two directors to Lundin's board, and one of its nominated directors to the project advisory committee that will oversee development the Fruta del Norte mine, and earn up to 50 per cent direct interest in eight separate exploration concessions in Ecuador.