Royal Gold enters into $265M deal with Botswanan Khoemacau Copper Mining
February 25, 2019
265.00 Million USD
On February 25, 2019, Royal Gold announced that it had entered into a life of mine purchase and sale agreement with the Botswana Khoemacau Copper Mining company, a fully-owned subsidiary of Cupric Canyon Capital LP.
The deal will see Royal Gold pay US$212 million in advance for 80% of the silver produced by the Khoemacau Copper Project, with an option to pay US$53 million for the remaining 20%.
Royal Gold expects average annual silver deliveries of 1.5 million ounces at a stream rate of 80%, or 1.9 million ounces based on a stream rate of 100%, with initial deliveries expected to start in the first half of 2021. The deal is expected to last until certain delivery thresholds are met.
Royal Gold is a global streaming and royalty company.
McCarthy Tétrault LLP advised Royal Gold with a team led by Christopher Langdon (Mining and M&A).