Versamet Closes $340M Eskay Creek Gold Stream Buy

Versamet Royalties Corporation has completed its acquisition of a 3.52% gold stream on the Eskay Creek gold-silver project from fund entities managed by Orion Resource Partners and affiliates of Blackstone. Versamet paid $340 million in upfront cash and issued 2,054,906 common shares to the vendors.

Versamet funded the upfront payment through an amended and restated credit facility that increased the revolving line from $200 million to $250 million (maturing March 2029) and added a $150 million term facility (maturing March 2028), for total $400 million, with a $100 million accordion once the term facility is repaid.

Under the stream, Versamet receives 3.52% of payable gold production for the life of the mine, subject to completion tests on or before September 30, 2027. Delivery payments equal 10% of the spot gold price at delivery, and the stream percentage can step up if completion tests are achieved after September 30, 2027.