Orion Resource Partners and Yamana Gold on Sunday announced the launch of a new precious metals royalty company, with assets in Africa, Australia, North America and South America.
TSX-V-listed Guerrero Ventures will acquire royalty, stream and gold loan assets from Orion and Yamana for $268-million and $65-million, respectively.
Upon closing of the acquisitions and a concurrent private placement of $10-million to capitalise the company, Guerrero will change its corporate name to Nomad Royalty Company.
Orion will hold about 77% and Yamana about 13% of the new company, which is led by CEO Vincent Metcalfe and chief investment officer Joseph de la Plante.
Nomad’s portfolio will consist of ten royalty, stream and gold loan assets, seven of which are currently producing or about to enter into production, and are expected to generate more than $30-million of operating cash margin next year.
From Orion, Guerrero is acquiring the gold stream on the Blyvoor gold mine, in South Africa, the gold stream on the Bonikro gold mine, in Cote d’Ivoire, the silver stream on the Woodlawn mine, in Australia, and the silver streams on the Mercedes and South Arturo mines in Mexico and the US, respectively.
From Yamana, Guerrero is acquiring the gold royalty on the RDM mine, in Brazil, the gold royalty on the Gualcamayo mine and the Deep Carbonates project commercial production payment, in Argentina, as well as the royalty on the Suruca project, in Brazil.
Yamana explained in a separate statement that the model was similar to the approach that it took with the creation of its Brio Gold subsidiary, which subsequently became a standalone public company and continues to provide valuation upside to Yamana following Brio’s acquisition by Leagold Mining and Leagold’s pending merger with Equinox Gold.