Trident will pay A$400,000 up front for the royalty, with further payments due later.
The royalty itself is pegged to the gold price, and will run at A$5.70 per ounce of gold produced if the gold price goes below A$1,500 per ounce, and at the much higher A$13.30 if gold is higher.
The current Australian gold price is upwards of A$2,560, so if and when Spring Hill gets back into production, Trident can be confident of significant cash flow.
The existing resource amounts 450,000 ounces, but there’s certainly potential for more.
The thinking is that Spring Hill will be put back into production within a couple of years to serve as a satellite deposit to the major and nearby Union Reef project currently owned by Kirkland Lake Gold.
Trident’s Tyron Rees describes the project as only ever having been “lightly drilled”.
Published at Tue, 14 Jul 2020 07:11:00 +0000-Trident to acquire royalty on Spring Hill from Thor Mining