Versamet to Buy $360M Eskay Creek Gold Stream

Versamet Royalties has entered into a definitive agreement to acquire a 3.52% gold stream on the Eskay Creek project in British Columbia for $360 million. The consideration includes $340 million in cash and $20 million in Versamet shares.

The stream provides 3.52% of payable gold production over the life of the mine with no caps, step-downs, or buyback provisions, and Versamet will pay 10% of the spot gold price for delivered ounces. The company expects attributable gold equivalent ounces to exceed 30,000 annually once full capacity is reached, with first production targeted for Q2 2027. Versamet will fund the deal with an amended credit facility totaling $400 million, including a $250 million revolving facility and a $150 million term loan.

Versamet expects the stream to contribute over 10,000 ounces of gold annually in the first five years of production, and the Eskay Creek project is described as 49% complete.