Chinese miner Zijin Mining has formally opened the Buriticá underground gold mine, in Colombia.
The company acquired the mine following the acquisition of Continental Gold in March 2020.
Triple Flag Precious Metals in 2019 acquired a gold and silver stream on Buriticá for an upfront payment of $100-million. The agreement entitles Triple Flag to purchase 2.1% of payable gold produced and 100% of payable silver produced at Buriticá for 10% and 5% of the spot gold and silver price, respectively, for each ounce delivered under the stream.
Zijin has provided Triple Flag with irrevocable notice of exercise of buyback of the gold stream for $80-million, less net gold cashflows received. The gold stream buyback is expected to close on December 31. Triple Flag's remaining silver stream covers the entirety of Buriticá's 755 km2 land package and includes both the Yaraguá and Veta Sur mineral systems and is open-ended, with no cap, step-down or buyback features.
Buriticá is expected to produce nearly 3.5-million ounces of gold and over 6.4-million ounces of silver over its life-of-mine.