At the time, Silver Lake had agreed with an affiliate of Appian to acquire a combined 2% net smelter royalty on the entire Sugar Zone property.
As consideration for the royalty, Silver Lake will make a share payment totalling $22 million, compared with Appian’s original acquisition cost of $9.5 million in December 2019.
Silver Lake will also purchase the credit facility for $33.4 million in cash, which represents a 15% premium to Appian’s principal investment of $28 million in July 2020.
This total includes the $28 million principal, a 115% early redemption charge of $4.2 million, $1.2 million in accrued interest and roughly $680,000 in technical consulting and legal fees.
“The success of the transaction is the result of Appian’s active engagement with Silver Lake following Harte Gold’s entry into creditor protection on December 7, 2021, following which Silver Lake was ultimately named as…
