Haywood Securities says Lumina’s royalty terms are “slightly better” than expected. Its rates are more favorable than those of peers like SolGold (LSE: SOLG; TSX: SOLG), analyst Kerry Smith said on Thursday. SolGold is advancing its Cascabel copper-gold asset through a set of milestones. The permit requires a $25 million advance royalty payment. This is much lower than SolGold’s $75 million deal, making the project more attractive, Smith said in his note.
The company is de-risking the Cangrejos project with feasibility study funding from Wheaton Precious Metals (TSX: WPM; NYSE: WPM; LSE: WPM), Smith said. Lumina’s $300 million precious metals purchase agreement with the metals streamer supports the project’s development. Finalizing the exploitation contract will unlock another $6 million in funding.
Future M&A
The analyst takes a long view on the asset.
“We expect the goal is a sale of this large…
