Nomad Royalty (NSR) has signed a $95m agreement to acquire a 40% stake in the Greenstone Gold Mines (GGM) from a subsidiary of Orion Mine Finance.

GGM owns and operates the Greenstone Gold Project in Ontario, Canada.

According to the gold stream deal, Nomad will pay $95m in two upfront cash instalments to Orion.

Nomad will deliver 5.938% of gold production from the Greenstone Gold Project, attributed to Orion’s 40% interest. This will be effective until the delivery of 120,333oz of gold, and 3.958% thereafter.

Furthermore, Nomad will pay an ongoing payment to the seller. This will be equal to 20% of the spot gold price for each delivery of refined gold ounce.

Nomad also agreed to fund mine-level environmental, social and governance (ESG) programmes under the gold stream.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

In a press statement, the firm said: “For further clarity, the Gold Stream does not encumber Equinox Gold’s 60% interest in GGM or the Greenstone Project.”

Nomad CEO Vincent Metcalfe said: “The addition of the Greenstone Gold Stream strengthens our portfolio and adds near-term production from a fully permitted project located in Ontario, a premier mining jurisdiction.

“This transaction is consistent with Nomad’s strategy of building a cash flow focused precious metals royalty and stream portfolio.”

The gold and silver royalty company said that the gold stream on Orion’s 40% stake will be applicable for all mining leases, mining claims, and other mining rights involving the Greenstone Project.

GGM is a 60/40 joint venture between Equinox Gold and Orion Mine Finance.

Construction recently commenced on the $1.23bn Greenstone gold mine project, which is expected to produce over 400,000oz of gold a year for the first five years.

According to estimates, the mine holds proven and probable mineral reserves of 5.54Moz, in grading 1.27g/t gold.