Bullion major Barrick Gold and Nevada Gold Mines (NGM), a joint venture between Barrick and Newmont, on Thursday announced two separate transactions in which they agreed to sell certain royalties.
Barrick will sell a portfolio of 22 royalties from mines in North America, South America, Australia and Africa, to Maverix Metals for up to $60-million, comprising $50-million upfront and a $10-million contingent consideration.
The portfolio comprises multiple assets that contain multimillion gold-equivalent ounces of reserves and resources, highlighted by a 1.0% royalty on Skeena Resources’ Eskay Creek gold/silver project in the prolific Golden Triangle of British Columbia. The Eskay Creek project is currently undergoing a feasibility study that is expected to be completed in the third quarter of 2022.
“We are pleased to add Barrick alongside Newmont, Pan American Silver, Kinross and Gold Fields, to the list of reputable counterparties from which we have acquired royalty portfolios. This portfolio boasts significant existing attributable mineral inventory with meaningful exploration potential in historic mining geographies. The acquisition increases our portfolio to a total of 147 royalties and streams and enhances our already robust exposure to the next generation of gold mines,” said CEO Dan O’Flaherty.
The transaction is targeted to close at the end of the third quarter of this year following the satisfaction of customary closing conditions.
Meanwhile, Barrick-operated NGM has agreed to sell a portfolio of three royalties to Gold Royalty for $27.5-million, to be settled in shares. Upon closing, NGM is expected to hold 7.0% of the issued and outstanding shares of Gold Royalty on a pro forma basis.
The royalties consist of minerals from the Granite Creek and Bald Mountain projects, located in Nevada.
"We are excited to further expand our strong royalty position in Nevada, one of the best mining jurisdictions in the world, by acquiring a portfolio of high-quality royalties from NGM,” said Gold Royalty chairperson David Garofalo.
Granite Creek started underground mining earlier this year and Gold Royalty says it is encouraged by the high-grade potential of the project to deliver significant returns in the future.
The Bald Mountain royalties provide Gold Royalty exposure to exploration upside on one of the biggest private mining land packages in the US.
“This transaction further validates our business model and growth strategy as we welcome NGM as a significant Gold Royalty shareholder,” he said.