The company reported overall engineering was 48% complete and construction was 21% complete, in its June quarter results.

"Underground development rates exceeded our target advance rates and today we are more than half-way to the orebody and remain on track for first gold production in the fourth quarter of next year," president and CEO Ron Hochstein said.

The company announced income of 9c per share for the quarter.

It had cash of US$393.5 million at the end of June, compared with $35 million at the end of December, primarily due to net proceeds from a $396.5 million private placement and the final drawdown of $110 under a gold prepay and stream credit facilities.

This was offset by $121 spent on development, $9.9 million on general and administration costs and $4.2 million on exploration.

Lundin closed a $350 million senior debt facility with a seven-member syndicate last month to complete funding for Fruta del Norte.

The company said it was also in discussions with "selected potential parties" to establish a cost overrun facility, which was a condition precedent to the initial drawdown of the facility, expected in early 2019.

Hochstein said Lundin had secured contracts for 80% of expected production through its offtake agreements with Boliden and Orion.

Fruta del Norte has a 4.9 million ounce reserve grading 9.2g/t gold and is expected to produce an average 325,000oz of gold a year over 15 years at an all-in sustaining cost of $609/oz.

Lundin shares closed down 1.26% on Friday to C$4.70, near the middle of its 52-week range.