Versamet Royalties has signed a definitive agreement with funds managed by Orion Resource Partners and affiliates of Blackstone to acquire a 3.52% gold stream related to the Eskay Creek gold-silver project in British Columbia, Canada.
This deal involves $360m (C$501.15m) in total consideration, including $340m in cash and $20m in company shares, with funding through an amended credit facility from the Bank of Montreal and the National Bank of Canada.
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The Eskay Creek project, operated by Skeena Resources, is expected to produce more than 300,000oz of gold annually during its initial five years and aims to restart operations in the second quarter of 2027.
Construction work on the project was 49% completed as of February 2026, following the receipt of an Environmental Management Act Permit.
Versamet is expected to receive more than 10,000 gold ounces annually from the Eskay Creek gold stream during its first five years.
If completion tests are not concluded by September 2027, the gold stream percentage incrementally increases per quarter until requirements are satisfied.
Under the agreement, if the cumulative total of gold produced from the gold stream is less than 2.61 million ounces by April 2040, Versamet will receive a one-time delivery to cover the shortfall.
In late 2025, Skeena began developing an updated NI 43-101 Technical Report for Eskay, aiming to explore ways to enhance production beyond the initial five years and extend the mine’s lifespan.
The findings of this study are set to be published in late 2026.
The transaction awaits closing conditions including the finalisation of Skeena’s senior secured notes offering, expected by April 2026.
Following the completion of the transaction, Versamet will possess seven paying royalties and streams, with another three anticipated to begin production by the end of 2027.
Versamet CEO Dan O’Flaherty said: “The addition of this robust gold stream is expected to materially increase our attributable production to over 30,000 gold equivalent ounces (GEOs) annually when Eskay reaches full capacity.
“As our largest acquisition to date, this transaction further enhances the quality and durability of our portfolio while maintaining exposure to meaningful exploration and expansion upside and is consistent with our focus on executing disciplined, accretive growth to drive long-term value for our shareholders.”
