Triple Flag Precious Metals Corp. announced Sunday that its wholly-owned subsidiary, Triple Flag Mining Finance Bermuda Ltd. has entered into a stream agreement with certain subsidiaries of China Molybdenum Co., Ltd. (CMOC), to receive gold and silver from the Northparkes copper-gold mine located in New South Wales, Australia. Northparkes is operated by CMOC on behalf of the Northparkes Joint Venture, an unincorporated joint venture between CMOC (80 percent), SC Mineral Resources Pty Ltd. (6.7 percent) and Sumitomo Metal Mining Oceania Pty Limited (13.3 percent). Triple Flag Bermuda will make an upfront cash payment of $550 million and on-going payments equal to 10 percent of the spot gold price and spot silver price at the time of delivery for gold and silver equal to 54 percent of the gold and 80 percent of the silver produced at Northparkes.
Northparkes is a well-established producing copper and gold mine located in central New South Wales, Australia, approximately 27 kilometers north-northwest of the town of Parkes. Discovered in 1976, the mine has been operating since 1993 and is one of the lowest cost copper mines in the world.
“This is a globally recognized mine with an excellent track record of safety, operations, reserve replacement and community involvement further bolstering and diversifying our portfolio," commented Shaun Usmar, founder and CEO of Triple Flag.
On Friday, the gold spot price closed at $1,798.60 an ounce with silver closing at $18.68 an ounce.