Bank of Montreal Backs $400M Facility for Versamet’s $340M Gold Stream Acquisition
Bank of Montreal joined National Bank of Canada in a $400 million credit facility to fund Versamet’s C$470.95 million cash payment and 2.05 million shares for a 3.52% gold stream at Eskay Creek. The package includes a $250 million revolving line maturing March 2029 and a $150 million term loan due March 2028.
1. Financing Structure
Bank of Montreal and National Bank of Canada arranged a combined $400 million credit facility to support Versamet’s acquisition of a 3.52% gold stream at Eskay Creek. The facility comprises a $250 million revolver and a $150 million term loan.
2. Use of Proceeds
Versamet used C$470.95 million in cash plus issuance of 2,054,906 common shares—equivalent to C$340 million upfront—and will receive 3.52% of payable gold production from Eskay Creek upon meeting completion tests by September 30, 2027.
3. Facility Terms
The revolving credit line matures in March 2029 with an additional $100 million accordion available after term loan repayment. The $150 million term loan matures in March 2028, financing the upfront payment for the stream.
4. Project and Revenue Implications
Eskay Creek is expected to produce over 300,000 ounces of gold annually in its first five years, declining to 230,000 ounces over 12 years. Versamet pays 10% of spot gold price per ounce, creating predictable fee income for the lenders.