Royal Gold to become stakeholder in TriStar’s project in Brazil
Nasdaq-listed precious metals royalty firm Royal Gold will invest $8-million into TSX-V-listed TriStar Gold’s Castelo de Sonhos (CDS) gold project, in Brazil.
TriStar has sold to Royal Gold an option to purchase a 1% net smelter return royalty on CDS for a cash payment of $500 000, once proven and probable gold reserves have been declared.
The companies will enter into exclusive negotiations to complete two subsequent transactions for an additional total value of $7.5-million, which will see TriStar sell and grant to Royal Gold a 1.5% net smelter royalty return on the CDS property.
Further, TriStar will grant to Royal Gold about 19-million common share purchase warrants, each entitling Royal Gold to purchase one common share of TriStar at a price of C$0.25 apiece for five years.
TriStar said in a release on Tuesday that all proceeds would be used to advance the CDS project’s feasibility study, permits and for general corporate purposes.
“We are delighted to have Royal Gold as a stakeholder, they are highly respected for their success in acquiring and managing a portfolio of royalties and metal streams.
“Their interest in a CDS royalty follows our rapid and cost-effective development of the CDS project over the past two years. This transaction with Royal Gold is an important step that will assist the de-risking of the project through a feasibility study and permitting activities that accelerate the path to production,” commented TriStar president and CEO Nick Appleyard.
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