Triple Flag, CMOC agree to streaming deal for Australian mine

Northparkes operation. (Image from Northparkes’ Facebook page)

Mine financing company Triple Flag Precious Metals Corp said on Sunday it has agreed to pay $550 million upfront as part of a streaming financing deal with China Molybdenum Co Ltd (CMOC) for future production of precious metals at CMOC’s Northparkes mine in Australia.

Streaming transactions are a type of alternative financing in the mining industry where funds are provided upfront to a miner in exchange for the sale of a fixed amount of future production of metals at a discounted price.

The deal gives Triple Flag rights to a majority of gold and silver to be produced at the Northparkes mine

The deal, between units of the two companies, gives Triple Flag rights to a majority of gold and silver to be produced at the mine in New South Wales until the Toronto-based company receives 630,000 ounces of gold and 9 million ounces of silver.

Thereafter, Elliott Management-backed Triple Flag would continue to receive less than half of the gold and silver produced at the mine.

On top of the $550 million upfront payment, Triple Flag would also pay CMOC 10% of the spot gold and spot silver price for each ounce at the time of each delivery.

(By Ismail Shakil; Editing by Aurora Ellis)

1821 0

Comments

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More Australia News