Star Royalties Highlights Proposed Acquisition of Sabre Gold by Minera Alamos
Star Royalties announces Sabre Gold's acquisition by Minera Alamos, expected to close in January 2025. The Company's 4% gold streaming agreement on Copperstone Gold Mine will remain unchanged, with a 25% spot gold price payment for each delivered ounce. The transaction positions Copperstone under experienced mine operators with an accelerated 12-month production timeline. Star Royalties will convert its 7.4M Sabre Gold shares into 5.1M Minera Alamos shares at a 116% premium, while C$2.0M in contingent payments will convert to an additional 4.46M Minera Alamos shares.
Star Royalties annuncia l'acquisizione di Sabre Gold da parte di Minera Alamos, prevista per gennaio 2025. L'accordo di streaming d'oro del 4% della società sulla Copperstone Gold Mine rimarrà invariato, con un pagamento del 25% basato sul prezzo spot dell'oro per ogni oncia consegnata. La transazione posiziona Copperstone sotto la gestione di operatori minerari esperti con un'accelerazione della timeline produttiva di 12 mesi. Star Royalties convertirà le sue 7,4 milioni di azioni di Sabre Gold in 5,1 milioni di azioni di Minera Alamos con un premio del 116%, mentre i pagamenti contingentali di 2,0 milioni di dollari canadesi si convertiranno in ulteriori 4,46 milioni di azioni di Minera Alamos.
Star Royalties anuncia la adquisición de Sabre Gold por parte de Minera Alamos, que se espera se cierre en enero de 2025. El acuerdo de streaming de oro del 4% de la compañía sobre la mina de oro Copperstone permanecerá sin cambios, con un pago del 25% del precio spot del oro por cada onza entregada. La transacción posiciona a Copperstone bajo operadores mineros experimentados con un cronograma de producción acelerado de 12 meses. Star Royalties convertirá sus 7,4 millones de acciones de Sabre Gold en 5,1 millones de acciones de Minera Alamos con una prima del 116%, mientras que 2,0 millones de dólares canadienses en pagos contingentes se convertirán en 4,46 millones de acciones adicionales de Minera Alamos.
스타 로열티는 미네라 알라모스가 사브르 골드를 인수한다고 발표했으며, 이는 2025년 1월에 완료될 것으로 예상됩니다. 회사의 4% 금 스트리밍 계약은 Copperstone Gold Mine에 대해 변동이 없으며, 각 배송된 온스에 대해 25%의 스폿 금 가격으로 지급됩니다. 이 거래는 Copperstone을 경험이 풍부한 광산 운영자 아래에 배치하며 12개월 생산 일정이 가속화됩니다. 스타 로열티는 740만 주의 사브르 골드를 510만 주의 미네라 알라모스 주로 116% 프리미엄에 전환하며, 200만 캐나다 달러의 조건부 지급은 추가로 446만 주의 미네라 알라모스 주로 전환될 것입니다.
Star Royalties annonce l'acquisition de Sabre Gold par Minera Alamos, qui devrait se conclure en janvier 2025. L'accord de streaming d'or de 4 % de l'entreprise sur la Copperstone Gold Mine restera inchangé, avec un paiement de 25 % du prix de l'or au comptant pour chaque once livrée. La transaction positionne Copperstone sous des opérateurs miniers expérimentés avec un calendrier de production accéléré de 12 mois. Star Royalties convertira ses 7,4 millions d'actions de Sabre Gold en 5,1 millions d'actions de Minera Alamos avec une prime de 116 %, tandis que 2,0 millions de dollars canadiens en paiements conditionnels seront convertis en 4,46 millions d'actions supplémentaires de Minera Alamos.
Star Royalties kündigt die Akquisition von Sabre Gold durch Minera Alamos an, die für Januar 2025 erwartet wird. Der Streaming-Vertrag der Gesellschaft über 4 % Gold auf der Copperstone Goldmine bleibt unverändert, mit einer Zahlung von 25 % des Spotgoldpreises für jede gelieferte Unze. Die Transaktion positioniert Copperstone unter erfahrenen Bergbaubetreibern mit einem beschleunigten Produktionszeitplan von 12 Monaten. Star Royalties wird seine 7,4 Millionen Aktien von Sabre Gold in 5,1 Millionen Aktien von Minera Alamos zu einem Aufschlag von 116 % umwandeln, während 2,0 Millionen CAD an bedingten Zahlungen in zusätzliche 4,46 Millionen Aktien von Minera Alamos umgewandelt werden.
- Stream expected to generate over US$17M in life-of-mine pre-tax cash flow at US$2,500/oz gold
- 116% premium on equity conversion from Sabre Gold to Minera Alamos shares
- Potential reduction in development costs through equipment relocation
- Accelerated 12-month construction timeline to production
- Conversion of C$2.0M contingent payments into Minera Alamos equity
- None.
TORONTO, ON / ACCESSWIRE / October 28, 2024 / Star Royalties Ltd. ("Star Royalties", or the "Company") (TSXV:STRR)(OTCQX:STRFF) is pleased to highlight an announcement by Sabre Gold Mines Corp. ("Sabre Gold") (TSX: SGLD, OTCQB: SGLDF), dated October 28, 2024, regarding its entering into of a definitive agreement for the purposes of being acquired by Minera Alamos Inc. ("Minera Alamos") (TSXV: MAI, OTCQX: MAIFF) pursuant to a plan of arrangement (the "Transaction"). Following closing of the Transaction, currently anticipated in January 2025, the Company's existing gold streaming agreement on the Copperstone Gold Mine ("Copperstone") will remain a flat
Transaction Highlights
Copperstone to be owned by proven mine builders and operators: Minera Alamos' established track record of permitting, building, and operating gold mines will be a key driver to returning Copperstone to production. Its management team has placed four cost-effective mines into production, while its current portfolio has projects in permitting, development, and production stages in similar geographies to Copperstone.
Accelerated timeline to production: Copperstone is expected to become a priority development project for Minera Alamos. Minera Alamos has indicated its intent to accelerate Copperstone into production by already initiating engineering efforts aimed at fast-tracking Copperstone's development, engaging with lenders regarding finance facilities, as well as expanding its technical team. Copperstone's permits are in place for the restart of mining operations and Minera Alamos anticipates a 12-month construction schedule from a construction decision.
Potential for reductions in development costs: Minera Alamos has a track record of developing mines into production at, or below, budget. Furthermore, Minera Alamos expects to be able to relocate a portion of the grinding and flotation equipment already owned by it to be utilized at Copperstone, including major equipment items required for reactivation of the crushing, grinding, flotation and filtration facilities. Process plant equipment and infrastructure accounted for approximately
40% of the capital budget for restarting Copperstone as per its June 2023 Preliminary Economic Assessment ("PEA").Validation of Copperstone and its stream value: As per Copperstone's PEA and assuming a gold price of US
$2,500 /oz, the Company's stream is expected to generate over US$17 million in LOM pre-tax cash flow prior to any successful mine-life extension from resource conversion and exploration upside.Immediate and significant premium to equity ownership: Upon closing of the Transaction, the Company's current equity position in Sabre Gold of 7,407,407 shares, received as part of the Company's stream restructuring and as detailed in the Company's news release dated October 3, 2023, will be converted into 5,133,333 shares of Minera Alamos, representing a
116% premium to Sabre Gold's closing share price as of October 25, 2024 and a100% premium to the Company's stream restructuring value. The Transaction will also diversify the Company's equity exposure from a single-asset developer in Sabre Gold to a portfolio of operating and development-stage projects in Minera Alamos.C
$2.0 million in contingent payments to be converted to equity: Furthermore, upon closing of the Transaction, the Company's outstanding C$2.0 million payments owed by Sabre Gold, as detailed in the Company's news release dated October 3, 2023, will be converted into an additional 4,459,459 shares of Minera Alamos, as a result of the share exchange process detailed in Sabre Gold's news release dated October 28, 2024.
Alex Pernin, Chief Executive Officer of Star Royalties, commented: "We are pleased to have supported Sabre Gold's proposed acquisition by Minera Alamos. We had been working closely with Sabre Gold's management on a definitive route forward for Copperstone and we believe this merger represents the most impactful pathway to unlocking significant value for our investment and for our shareholders. Minera Alamos is a proven mine builder and miner, and we view them as an excellent future partner to finance, construct, and operate Copperstone. We also see meaningful re-rating potential for our 9.6 million Minera Alamos shares, to be received at Transaction closing, as Minera Alamos further derisks its portfolio and advances its pipeline. This Minera Alamos equity will improve the liquidity and strength of our balance sheet. Overall, this is a material transaction for Star Royalties as it not only cements value for our Copperstone stream, but it also meaningfully rerates and derisks our mining royalty portfolio as a whole, and ultimately could close the valuation gap implied by our share price to the value of our underlying mining royalty portfolio and Green Star ownership."
CONTACT INFORMATION
For more information, please visit our website at starroyalties.com or contact:
Alex Pernin, P.Geo. | Dmitry Kushnir, CFA |
Chief Executive Officer and Director | Vice President, Investor Relations and Strategy |
+1 647 494 5001 | +1 647 494 5088 |
About Star Royalties Ltd.
Star Royalties Ltd. is a carbon credit and precious metals royalty and streaming company. The Company innovated the world's first carbon credit royalties in forestry and regenerative agriculture through its pure-green joint venture, Green Star Royalties Ltd., and offers investors exposure to carbon credit and precious metals prices. The Company's objective is to provide wealth creation by originating accretive transactions with superior alignment to both counterparties and shareholders.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this news release may constitute "forward-looking statements", including those regarding future market conditions for metals and minerals, future valuation of Minera Alamos, development and production of Copperstone, permitting and construction scheduling of Coppertone, future location of Copperstone grinding and flotation equipment, expected future cash flow from the stream agreement, the net cash position of Sabre Gold, the successful closing of the Transaction, the issuance of the Sabre Gold and Minera Alamos shares under the Transaction, the Company's position in Copperstone's future gold production, the net cash position of the Company, and future capital raising opportunities are statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. When used in this news release, words such as "estimates", "expects", "plans", "anticipates", "will", "believes", "intends" "should", "could", "may" and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Star Royalties to be materially different from future results, performances or achievements expressed or implied by such statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be an accurate indication of whether or not such results will be achieved.
A number of factors could cause actual results, performances or achievements to differ materially from such forward-looking statements, including, without limitation, changes in business plans and strategies, market and capital finance conditions, ongoing market disruptions caused by the Ukraine and Russian conflict, metal and mineral commodity price volatility, discrepancies between actual and estimated production and test results, mineral reserves and resources and metallurgical recoveries, mining operation and development risks relating to the parties which produce the metals and minerals Star Royalties will purchase or from which it will receive royalty payments, risks inherent to royalty companies, title and permitting matters, activities by governmental authorities, currency fluctuations, the global, federal and provincial social and economic climate in particular with respect to addressing and reducing global warming, natural disasters and global pandemics, dilution, risk inherent to any capital financing transactions. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should exercise caution in relying upon forward-looking statements and the Company undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.
SOURCE: Star Royalties Ltd.
View the original press release on accesswire.com
FAQ
What is the value of Star Royalties' (STRFF) streaming agreement on Copperstone Gold Mine?
How many Minera Alamos shares will Star Royalties (STRFF) receive from the Sabre Gold acquisition?
When is the Sabre Gold acquisition by Minera Alamos expected to close?
What premium will Star Royalties (STRFF) receive on its Sabre Gold shares conversion?
