JOHANNESBURG (miningweekly.com) – TSX-V-listed Tsodilo Resources and dual-listed gold royalty company Sandstorm Gold have entered into a $1.5-million royalty agreement on three projects.
The royalty sale includes the grant of a 1% net smelter royalty (NSR) on Tsodilo’s wholly owned Botswana subsidiary Gcwihaba Resources’ prospecting metal licences in north-west Botswana and a 1% NSR on the company's 70%-owned South African subsidiary Idada’s gold and silver prospecting licence in Mpumalanga.
It also includes the grant of a 1% gross production royalty on the company's wholly owned subsidiary Bosoto’s precious stone prospecting licence in the Orapa kimberlite field in Botswana.
“The agreements represent an attractive source of funding for Tsodilo, allowing us to fund our exploration activities while still giving shareholders full upside exposure to our projects,” said Tsodilo chairperson and CEO James Bruchs.
Sandstorm has the right of first refusal with respect to any third-party bona fide offers to buy a metal or precious stone royalty on the properties.
Tsodilo plans to use the proceeds from the royalty sale for exploration and general corporate purposes.