TORONTO (miningweekly.com) – Mining royalty and development company AuRico Metals has reported revenue of $3-million for the year ended December 31, following the company's inception on July 2, 2015.

The TSX-listed company was formed as a spin-off company after Canadian gold miners Alamos Gold and AuRico Gold merged in a $1.5-billion deal. The merged company retained the Alamos Gold name and owned a 4.9% stake in the newly formed AuRico Metals, while former Alamos and AuRico Gold shareholders owned the rest.

Since then the company had made significant progress in growing its royalty business and advancing its 100%-owned Kemess gold/copper project, in British Columbia.

Two months after inception, AuRico Metals agreed to buy private firm Mineral Streams, which had a 0.25% net smelter return (NSR) royalty on the Williams mine, at Barrick Gold Corp’s Hemlo complex. Mineral Streams also had a 0.5% NSR royalty on Wesdome Gold Mines’ Eagle River mine and a 1.5% NSR royalty on Barrick's David Bell property, which also formed part of the Hemlo complex. These royalties were expected to add about C$1-million per year to AuRico Metals' top line.

The acquisition of Mineral Streams expanded the company’s cornerstone assets, which included a 1.5% net smelter return (NSR) royalty on Young-Davidson gold mine, in Ontario, and a 2% NSR royalty on Fosterville mine, in Victoria, Australia.

Further, AuRico Metals on Wednesday reported that it had negotiated terms for an acquisition credit facility with Macquarie Group for up to $15-million, to support further potential royalty acquisitions. The credit facility was expected to be finalised this month.

Last year, AuRico had completed an exploration programme at Kemess East, with 27 719 m drilled. Highlights included a 772 m intersection of 0.465 g/t gold and 0.365% copper.

The company continued its permitting efforts at the Kemess Underground project, having completed its environmental application (EA) and submitted it to local First Nations in early January. It planned to submit the EA to the British Columbia Environmental Assessment Office by the end of the month.

Meanwhile, AuRico continued to advance the updated Kemess Underground feasibility study, which was expected to be released in March, along with an updated resource estimate for Kemess East.

As at December 31, AuRico had $8.4-million in cash in the bank and $6.9-million in working capital, excluding inventories. It also received an outstanding harmonised sales tax refund of $1.3-million in January.

The company expected to be cash flow positive in 2017 owing to the ongoing pursuit of cost-cutting measures, and after it had completed this year's investments in Kemess,