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October 17, 2019

RBPlat signs $145m gold streaming deal with Triple Flag

Royal Bafokeng Platinum (RBPlat) has signed an agreement with Triple Flag Mining Finance Bermuda, pursuant to which RBPlat will deliver a portion of its gold production to the latter over the life of its operations for $145m.

Royal Bafokeng Platinum (RBPlat) has signed an agreement with Triple Flag Mining Finance Bermuda, pursuant to which RBPlat will deliver a portion of its gold production to the latter over the life of its operations for $145m.

RBPlat signed the agreement through its wholly owned subsidiary Royal Bafokeng Resources.

Under the terms of the agreement, Triple Flag will pay an additional 5% of the gold spot price to RBPlat for each gold ounce delivered.

According to RBPlat, gold is a by-product of platinum group metal (PGM) production at the company’s mining operations.

It accounts for 3% of revenue reported by RBPlat in its last published half-year results.

RBPlat CEO Steve Phiri said: “Apart from the confidence that Triple Flag has demonstrated in our asset base and our business in general, this transaction adds further strength to RBPlat’s balance sheet.

“In addition, as part of the agreement, RBPlat will launch the Triple Flag scholarship programme for RBPlat employee families and doorstep communities.”

Key features of the agreement include delivery of 70% of RBPlat’s gold production up to 261,000oz.

After the delivery of 261,000oz, Triple Flag will receive 42% of gold production for the remaining mine life.

Triple Flag CEO Shaun Usmar said: “This agreement represents the ideal long-term partnership for Triple Flag: a mutually beneficial investment into a world-class resource and operation with a partner committed to ethical mining and the creation of value for all of its stakeholders.”

The agreement is subject to regulatory approvals and consents and is expected to close next January.

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