Osisko Gold Royalties (TSX:OR) has entered into a binding agreement to acquire a 1.8% gross revenue royalty on Spartan Resources’ (ASX:SPR) Dalgaranga Gold Project in Western Australia.
The intermediate precious metal royalty company will also acquire a 1.35% gross exploration royalty on additional regional exploration licences in proximity to the Spartan-operated project.
For the Dalgaranga royalty and exploration royalty, Osisko will pay vendor Tembo Capital via its Tembo Capital Mining Fund III, US$44 million ($63.5 million) and US$6 million respectively. Tembo Capital is a private equity group focusing on natural resources and clean energy metals.
Closing of the transaction is subject to approval from Australia’s Foreign Investment Review Board (FIRB), which is expected in the coming weeks.
Spartan has the ability to buy back up to 20% of the Dalgaranga royalty, as well as 20% of the exploration royalty for $3.15 million until February 2027.
Osisko CEO Jason Attew says the company’s ability to uncover and execute accretive near-term cash flow precious metals transactions in tier one mining jurisdictions is “synonymous with our strategy”.
“We believe that Dalgaranga is one of the most attractive gold development and re-start projects globally given its high-grade underground nature, and its location in the Murchison Gold District in Western Australia,” Attew says.
“What the Spartan team has been able to accomplish in terms of resource discovery and definition at Dalgaranga over the past two years is impressive. We believe that Spartan will move forward with an FID at the project before the end of 2025 and that its team will continue to expand the high-grade resource at Dalgaranga.
“We’re extremely pleased to be associated with one of Australia’s most exciting gold development and restart opportunities, and with an asset that boasts such exciting exploration upside potential.”
Osisko Gold Royalties holds a North America-focused portfolio of over 185 royalties, streams and precious metal offtakes, including 20 producing assets. Osisko’s portfolio is anchored by its cornerstone asset – a 5% net smelter return royalty on the Canadian Malartic Complex, one of Canada’s largest gold mines.
Write to Adam Orlando at Mining.com.au
Images: Spartan
