South32 sells gold royalties
PERTH (miningweekly.com) – Diversified miner South32 has struck an agreement with TSX-V-listed royalty company Elemental Royalties to divest of a package of mineral royalties.
Under the terms of the agreement, Elemental will make a $40-million cash payment and would issue $15-million of its own shares to South32 for the royalty package, which consists of three gold royalties and one related non-gold royalty in Western Australia.
“The sale of these royalties is another step forward in unlocking value in our portfolio, at a time when there is strong appetite for exposure to standalone royalty investment,” South32 CEO Graham Kerr said on Tuesday.
“The proposed transaction will realise a cash payment, while retaining exposure to these royalties through a shareholding in Elemental. Separately, we continue to hold a portfolio of royalties weighted towards base metals.”
Completion of the transaction is subject to a number of conditions, including Australian Foreign Investment Review board approval and Elemental securing the required funding.
Following the completion of the transaction, South32 would hold a 19.7% stake in Elemental.
“We are delighted to announce this transformative acquisition from South32, which is our first as a public company and the second major gold royalty acquisition we have completed this year,” said Elemental CEO Frederick Bell.
“This continues the Elemental team’s excellent track record of sourcing high-quality, value-accretive royalty opportunities, whilst immediately adding scale, increasing diversification and exposure to tier 1 jurisdictions. We are grateful for the support of South32 and look forward to working together to continue creating value for shareholders."
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Established in 1933, EKATO is the world leader in agitation technology, supplying agitators for processes and applications such as chemicals and...
VISIT SHOWROOM
Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
