Triple-listed Kirkland Lake on Wednesday announced that it would pursue arbitration over Canadian miner Centerra Gold’s sale of its royalty portfolio to Triple Flag Mining Finance Bermuda, stating that its Fosterville gold mine, in Australia, had certain rights over a 2% royalty.
Kirkland stated that in terms of Fosterville’s royalty agreement with Centerra subsidiary AuRico Metals Royalty Corporation (AMARC), it had the right of first offer, or first refusal, in the event of the sale of the 2% royalty.
Kirkland said that the sale of AMARC to Triple Flag was contrary to the royalty agreement, unless Fosterville was offered an opportunity to exercise its rights.
Centerra announced earlier in the day that it had completed the sale of AuRico Metals and AMARC to Triple Flag for $155-million in cash.
The royalty sale was announced in May this year and formed part of a larger transaction between Centerra and Triple Flag that also included a silver stream on the Kemess project, in Canada, for $45-million.