Sailfish Royalty Corp. (TSXV: FISH) announced today that it has signed an agreement with Osisko Gold Royalties Ltd. (TSX: OR) to transfer its remaining 2.75% net smelter return royalty on Tocantinzinho Gold Project to the latter. The royalty transfer is reported to be for consideration of US$10.0 million.
The company relayed that the transaction will be paid in cash and the net proceeds are expected “to continue funding the aggressive return of capital to shareholders and provide flexibility to deploy capital opportunistically in other transactions.”
The Tocantinzinho Gold Project is located in the Tapajos district of northern Brazil. Sailfish previously transferred a 0.75% NSR on the project to Metalla Royalty & Streaming Ltd. (TSXV: MTA) for US$9.0 million.
Should the transaction push through, Sailfish’s portfolio will be left with a 3% NSR on the San Albino gold mine in Nicaragua, 2% NSR on the rest of the area surrounding San Albino, and up to 3% NSR on the Spring Valley gold project in Nevada.
The transaction is expected to close on August 22, 2021, subject to customary closing conditions and third-party consent.
Sailfish Royalty last traded at $1.25 on the TSX Venture.
Information for this briefing was found via Sedar and Sailfish Royalty. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.