Treasury Metals Closes On 2.2% NSR Sale To Sprott

Treasury Metals (TSX: TML) has closed on a royalty agreement with that of Sprott Resource Streaming and Royalty Corp. The royalty arrangement is related to the firms flagship asset, the Goliath Gold Complex, found in Ontario.

The arrangement has seen Sprott take a 2.2% net smelter returns royalty on the property in exchange for US$20.0 million. The NSR will be applicable for the life of the Goliath Gold Complex property, and covers all minerals produced at the large complex. The royalty is set to be halved upon 1.5 million gold ounces of production being achieved.

As per the terms outlined at the time of the initial announcement, Treasury Metals is able to repurchase up to 50% of the NSR until the end of 2028, with the price to be paid subject to a sliding scale that is time dependent. Furthermore, the royalty will increase by 25% if commercial production is not achieved by the end of 2028.

“We are extremely pleased to announce the closing of this transaction with our partners at Sprott, which will allow us to move the Goliath Gold Complex forward toward construction and operation,” said Jeremy Wyeth, CEO of Treasury Metals, on the development.

Proceeds from the sale of the royalty agreement are to be used by the company to advance the project to a construction decision. This is said to include permitting, consultations, economic studies, and corporate expenses.

Treasury Metals last traded at $0.63 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. 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.

Leave a Reply