Versamet Secures 3.52% Eskay Creek Gold Stream for $340m Cash and Shares
Versamet Royalties paid $340m cash and 2.05m shares to secure a 3.52% gold stream on the Eskay Creek project, financed by a $400m credit facility. The project’s initial five-year production exceeds 300,000oz annually, with Versamet paying 10% of spot gold for delivered ounces.
1. Stream Acquisition and Payment
Versamet Royalties acquired a 3.52% gold stream on the Eskay Creek project by paying $340m in cash and issuing 2,054,906 common shares to fund entities managed by Orion Resource Partners and affiliates of Blackstone.
2. Financing Structure
The upfront payment was financed through a revised credit facility increasing the revolving line to $250m maturing March 2029 and adding a $150m term facility maturing March 2028, for a total $400m commitment from Bank of Montreal and National Bank of Canada, with a $100m accordion once the term facility is repaid.
3. Stream Terms and Production Outlook
The uncapped stream gives Versamet 3.52% of payable gold production at 10% of spot price, with incremental increases up to 3.67% for delayed completion tests due by 30 September 2027; Eskay Creek is forecast to produce over 300,000oz annually in the first five years and roughly 230,000oz annually over its first 12 years, and a one-time delivery triggers if 2.61moz is not met by April 2040.