(Kitco News) - On Thursday, Barrick Gold (NYSE: GOLD) (TSX: ABX) announced that it has entered into a definitive agreement to sell a portfolio of royalties to Maverix Metals (NYSE & TSX: MMX) for total consideration of up to $60 million.
According to the company’s statement, the portfolio consists of 22 royalties on the production of minerals from mines located in North America, South America, Australia and Africa.
Barrick said that the total consideration of $60 million consists of $50 million in cash payable on closing of the portfolio sale, subject to the exercise of any right of first refusal or buy-down right by the counterparties under certain royalties, and three contingent payments.
In its press-release, Maverix noted that the portfolio comprises multiple assets that contain multi-million gold equivalent ounces of reserves and resources, highlighted by a 1.0% royalty on Skeena Resources’ Eskay Creek gold-silver project in the prolific Golden Triangle of British Columbia.
The Eskay Creek project is currently undergoing a feasibility study that is expected to be completed in the third quarter of 2022.
The transaction is targeted to close at the end of the third quarter of this year following the satisfaction of customary closing conditions.
Maverix is a gold-focused royalty and streaming company with a globally diversified portfolio of over 140 assets. The company indicated that its mission is to increase per share value by acquiring precious metals royalties and streams.
