Superior Gold repurchases royalty
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(Kitco News) - Western Australia mine operator Superior Gold (TSXV:SGI) said today it will repurchase a 2% net smelter return royalty from Northern Star Resources Limited on future gold recovered from Superior's Plutonic Gold Operations for $4.6 million (AUD$6.5 million).
Projected cash flow is expected to improve by at least $2 million over the next twelve months, the company said. It added that the removal of this royalty is "...an important value enhancement for Superior Gold shareholders as a 2% royalty of this nature is customarily valued at a range of 10-20 times cash flow."
Plutonic Gold operations are located in Western Australia and comprise of a mill and underground operations.
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