Mining entrepreneur Lukas Lundin is putting his own capital into one of his namesake companies that badly needs it.

Lundin Gold Inc. announced on Wednesday that it has secured an US$18-million loan from Zebra Holdings and Investments, a Lundin family trust. Zebra is already the upstart gold miner’s largest shareholder, with a 28 per cent stake.

Lundin Gold wants to develop the US$669-million Fruta del Norte project in Ecuador, but it only had about US$8 million in cash remaining at the end of March. Analysts noted that this small financing from the Lundin family helps tide the company over as it tries to secure a much larger financing package. It did not come as a surprise.

The question is how and when Lundin Gold will try to secure the much larger funding needed to build the mine. BMO Capital Markets analyst Brian Quast said in a note that he currently assumes the company will arrange a US$130-million financing in the third quarter of 2016, and an additional US$850-million in the second quarter of 2017. Both deals are expected to be a combination of debt and equity, he said.

Quast noted that Lundin Gold has to make an advance royalty payment of US$25 million when the exploitation agreement for Fruta del Norte is executed. He expects that to happen in late 2016 or early 2017.