Royal Gold enters into $265M deal with Botswanan Khoemacau Copper Mining

Date Announced

February 25, 2019

Lead Office

Toronto

Value

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).

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