Glencore sells royalty package to Sandstorm Gold
NYSE- and TSX-listed Sandstorm Gold has acquired BaseCore Metals, an entity jointly owned by commodities trader and miner Glencore and Ontario Pension Plan Board (OTPP), for $525-million in cash and shares, it was announced this week.
The consideration comprised $425-million in cash and the balance in common shares, Glencore and Sandstorm Gold announced in separate statements.
“The closing of the BaseCore transaction is the first part of an exciting new chapter for Sandstorm,” commented Sandstorm president and CEO Nolan Watson.
“The addition of this royalty package will contribute meaningful immediate and long-term growth to the company’s portfolio and help position Sandstorm as the go-to midtier royalty company,” he added.
BaseCore was created in 2017 as a joint venture partnership focused on base metals streams and royalties. Glencore contributed a portfolio of selected royalties, which were valued at $300-million at the inception of the partnership with OTPP.
Glencore said it would receive $300-million in cash and Sandstorm shares for its 50% interest in BaseCore, including retained cash on balance sheet that would be distributed to Glencore after which the intention was to collapse the business.
The royalty package includes a 1.66% net profits interest (NPI) on the Antamina copper mine, a 1.0% stream on production from CEZinc, a 2.0% net smelter return royalty on the Horne 5 gold project, and a 0.5% NPI on the Highland Valley Copper mine.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation















