Versamet Royalties has acquired a 3.52% gold stream related to production from the Eskay Creek gold-silver project in British Colombia, Canada.
The transaction was completed with fund entities managed by Orion Resource Partners and affiliates of Blackstone.
The acquisition follows a definitive agreement signed earlier this month.
Versamet made an upfront payment of $340m (C$470.95m) in cash and issued 2,054,906 common shares to the vendors.
This payment was financed through a revised credit facility that includes an increase in the revolving facility from $200m to $250m, set to mature in March 2029, and a new $150m term facility maturing in March 2028.
The total combined facility amounts to $400m, provided by the Bank of Montreal and the National Bank of Canada.
An additional $100m accordion is available on the revolving credit once the term facility is fully repaid.
Versamet is entitled to receive 3.52% of payable gold production from the Eskay Creek project, assuming specific completion tests are achieved by 30 September 2027.
The stream is uncapped with no reduction or buyback options and includes certain interest areas.
If completion tests are not met by the deadline, the stream percentage will rise to 3.57%, 3.62% and 3.67% for completions in the first, second or third calendar quarters thereafter, respectively.
An additional 0.13% increase will apply for each subsequent quarter until the tests are satisfied.
Eskay Creek is projected to produce more than 300,000oz of gold annually in its initial five years and approximately 230,000oz yearly over its first 12 years.
Versamet will pay 10% of the spot gold price for each ounce delivered under the gold stream.
If the cumulative total of 2.61 million ounces (moz) for the stream is not met by 1 April 2040, the company is entitled to a one-time delivery of gold, equal to the difference between the delivered amount and 2.61moz, multiplied by the current stream percentage.
“Versamet finalises Eskay Creek gold stream acquisition” was originally created and published by Mining Technology, a GlobalData owned brand.
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