Versamet Royalties Closes Cornerstone Gold Stream Deal on Eskay Creek

Versamet Royalties Corp. ( (TSE:VMET) ) has issued an update.

Versamet Royalties has closed its acquisition of a 3.52% gold stream tied to production from the Eskay Creek gold-silver project in Canada, buying the interest from funds managed by Orion Resource Partners and affiliates of Blackstone. The deal was financed with a US$340 million cash payment and the issuance of just over two million common shares, underpinned by an expanded credit facility totaling US$400 million from Bank of Montreal and National Bank of Canada.

Under the gold stream agreement, Versamet will receive 3.52% of payable gold for the life of the mine in exchange for ongoing payments equal to 10% of the spot gold price on delivery. The uncapped stream, backed by security over Eskay Creek’s assets and including minimum delivery protections, is expected to provide meaningful long-term cash flow given projected mine output averaging more than 300,000 ounces of gold annually in the first five years and about 230,000 ounces over an initial 12-year life.

The most recent analyst rating on (TSE:VMET) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on Versamet Royalties Corp. stock, see the TSE:VMET Stock Forecast page.

More about Versamet Royalties Corp.

Versamet Royalties Corporation is an emerging mid-tier precious metals royalty and streaming company focused on acquiring high-quality gold and silver assets to create long-term per-share value. The company’s common shares trade on both the NASDAQ and Toronto Stock Exchange under the symbol VMET, positioning it in North American capital markets with a focus on precious metals exposure for investors.

Average Trading Volume: 125,418

Technical Sentiment Signal: Strong Buy

Current Market Cap: C$1.16B

See more insights into VMET stock on TipRanks’ Stock Analysis page.