China’s CMOC Group has signed a definitive agreement to acquire Lumina Gold (TSXV: LUM) in an all-cash deal valued at C$581 million ($421 million), marking a major step into Ecuador’s underdeveloped mining sector.

Lumina’s flagship asset, the Cangrejos gold-copper project, is considered the largest primary gold deposit in Ecuador. Located in the El Oro province in the country’s southwest, the project sits approximately 30 km southeast of the Pan American Highway and 40 km from the deep-water port of Puerto Bolívar.

The Canadian miner launched a feasibility study on the project in January 2024, building on its 2023 prefeasibility study. Updates to date include a larger and more advanced processing plant, with projected throughput increasing to 40,000 tonnes per day — up from the previously envisioned 30,000 tonnes.

Cangrejos hosts 659 million tonnes of probable reserves grading 0.55 gram per tonne (g/t) gold, 0.1% copper and 0.69 g/t silver. This equates to 11.6 million oz. of gold, 1.4 billion lb. of copper and 14.4 million oz. of silver. These are contained within an indicated resource of 1 billion tonnes grading 0.48 g/t gold, 0.09% copper and 0.7 g/t silver — representing 3.7 million oz. of gold, 483 million lb. of copper and 7 million oz. of silver.

The 2023 PFS outlined a capital expenditure of $925 million and projected average annual gold-equivalent production of 469,000 oz. over a 26-year mine life.

CMOC’s move highlights growing investor interest in Ecuador, which is rich in mineral resources but has historically lagged behind regional mining leaders Peru and Chile. While the country shares geological continuity with Peru, political and regulatory uncertainty have slowed the development of large-scale mining projects.

Shares of Lumina Gold surged 31% on the Toronto Venture Exchange following the announcement, pushing its market capitalization to C$480 million ($348 million).

The acquisition is expected to close in the third quarter of 2025, pending shareholder, regulatory and court approvals.