Nick von Schirnding, executive chairman of Arc commented: “It is pleasing to have finalised the US$45m royalty agreement with Golden Square, which in addition to the US$5m loan note issued to Arc by Golden Square and repayable to Arc on 19 March 2021, should prove valuable going forward”.
Separately, we have completed a major cost reduction exercise across the board at Arc to ensure we are in the best possible financial shape going forward as we all adapt to the COVID-19 crisis.
A separate update on this – as well as the work we are completing on the Kalaba Commercial-Scale Demonstration plant and drilling programme – will be published shortly.”
Arc Minerals is pleased to announce that it has entered into a binding royalty agreement (the “Royalty Agreement”) with Golden Square Equity Partners Limited (“Golden Square”) following the sale of Arc’s entire 99.43% interest in Casa Mining Limited (“Casa”) to Golden Square for a consideration of up to US$50m (Announcement made on 18 March 2020).
Under the terms of the Royalty Agreement, Arc shall be entitled to a royalty stream up to an aggregate value of up to US$45m. The royalty stream will be based on the gold production of the projects and interests held by Casa as at 19 March 2020 and is to be calculated as 3% of net smelter production at the prevailing gold price on the production date and paid by Casa to Arc quarterly in arrears based on the ounces of gold produced.
The Royalty Agreement of up to US$45m is based on potential gold production of the projects and interests that are held by Casa. There can be no guarantee that any royalty payments will flow to Arc or the timing of such payments.
Separately, the first payment by Golden Square to Casa in respect of operating expenses has been made this week.
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
Terms of Website Use
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned