Triple Flag Precious Metals (TSX: TFPM, NYSE: TFPM) has added two Peruvian assets to its portfolio with the acquisition of silver and gold streams on the Arcata and Azuca mines operated by Sierra Sun, a private mining group headquartered in Lima.
The streaming deal will cover 5% of payable metal from the two mines during their operating life, which is expected to be 10-plus years, with no step-down in stream rates. As consideration, Triple Flag will pay $35 million cash upfront, and then make ongoing payments of 10% of the spot silver or gold price for each ounce delivered.
“Collectively, Arcata and Azuca are expected to have at least a 10-year mine life, with Sierra Sun targeting production to restart at Arcata in the near term,” said Sheldon Vanderkooy, Triple Flag’s CEO. He added that gold-equivalent ounces pursuant to the streams are expected to ramp up to approximately 5,000-6,000 oz. per year…
