- Write by:
-
Wednesday, November 25, 2020 - 2:01:22 PM
-
456 Visit
-
Print
Mining News Pro - South32 has agreed to sell three mineral royalties in Western Australia to Canada’s Elemental Royalties for $US55 million ($75 million).
This comprises three gold royalties that are ranging in stage from construction to advanced exploration.
They encompass Capricorn Metals’ Karlawinda gold operation, Focus Minerals’ Laverton gold project and Rumble Resources’ Western Queen gold exploration project, all of which are in Western Australia.
Elemental will pay South32 with $US40 million in cash and $US15 million worth of shares, giving the latter nearly 20 per cent stake in Elemental and making South32 its largest shareholder.
South32 chief executive Graham Kerr said that the sale was another step forward in unlocking value in its portfolio, at a time when there is strong appetite for exposure to stand-alone royalty investments.
“Separately, we continue to hold a portfolio of royalties weighted towards base metals,” he said.
Should the transaction eventuate, South32 will hold a portfolio of 40 minerals royalties that are weighted towards base metals.
Elemental will gain by obtaining exposure to Western Australia’s mining jurisdiction, with the acquisition forecast to nearly double the company’s royalty revenue starting mid-2021.
Elemental chief executive Frederick Bell said that this was the second major gold royalty acquisition the company had completed this year.
“This continues the Elemental team’s excellent track record of sourcing high-quality, value-accretive royalty opportunities, whilst immediately adding scale, increasing diversification and exposure to Tier 1 jurisdictions,” he said.
“We are grateful for the support of South32 and look forward to working together to continue creating value for shareholders.”
Short Link:
https://www.miningnews.ir/En/News/608508
China’s Zhaojin Mining Industry said on Wednesday that its A$733 million ($477.8 million) offer to buy Australia’s ...
Toronto-listed miner OceanaGold Corp said on Wednesday it will raise 6.08 billion pesos ($106 million) through an ...
Gold’s record-setting rally this year has puzzled market watchers as bullion has roared higher despite headwinds that ...
Canada and its Five Eyes Alliance partners are working on put forward a response to tackle the price manipulation of ...
AbraSilver Resource said on Monday it has received investments from both Kinross Gold and Central Puerto, Argentina’s ...
Gold took a tumble as haven demand waned after geopolitical tensions eased in the Middle East.
The four largest indigenous communities in Chile’s Atacama salt flat suspended dialogue with state-run copper giant ...
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
Representatives from the Peñas Negras Indigenous community, in northwestern Argentina, clashed with heavily armed police ...
No comments have been posted yet ...