WINNIPEG, Manitoba (miningweekly.com) – TSX-listed AuRico Metals has closed the acquisition of Kiska Metals, increasing its already strong royalty portfolio by six royalties to 17.
Kiska is now a wholly-owned subsidiary of AuRico.
The arrangement was approved by about 96.31% of Kiska security holders at a special meeting on March 1. A final order approving the arrangement was obtained from the Supreme Court of British Columbia on March 3.
Kiska's portfolio is focused on the East Timmins and Boulevard properties, operated by Kirkland Lake Gold and Independence Gold, respectively. Further, Kiska's six wholly-owned exploration projects present organic royalty creation opportunities, AuRico pointed out. The assets are all located in North America.
"We are very pleased to close this accretive transaction which further broadens our royalty portfolio pipeline in North America and preserves our strong balance sheet. With a well-diversified portfolio of royalties in place and several key upcoming catalysts expected at Kemess in the near term, we remain very well positioned for an exciting year ahead,” AuRico president and CEO Chris Richter commented.
AuRico uses income from its royalty portfolio to advance its 100% interest in the Kemess property, in British Columbia. The Kemess project hosts the feasibility stage Kemess underground gold/copper project, the Kemess East exploration project, and the infrastructure pertaining to the past producing Kemess South mine.
AuRico's royalty portfolio includes a 1.5% net smelter return (NSR) royalty on the Young-Davidson gold mine and a 2% NSR royalty on the Fosterville mine, as well as a portfolio of additional producing and preproduction royalty assets located in North America and Australia.