Triple Flag Precious Metals Corp. (with its subsidiaries,
“Triple Flag” or the “Company”) (TSX: TFPM, NYSE: TFPM) announced
that it has entered into definitive agreements for the acquisition
of 3% gold streams on each of the Agbaou and Bonikro mines operated
by Allied Gold Corp. (“Allied”) for total cash consideration of $53
million. Unless otherwise noted, all dollar amounts in this news
release are expressed in US dollars.
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Stream Coverage Map (Graphic: Business
Wire)
“The acquisition of new 3% gold streams on each of the Agbaou
and Bonikro mines adds immediate cash flow to Triple Flag from two
producing assets, with an operator that has already created
significant value at these operations from exploration investments.
We fully expect this exploration track record to continue and see
significant upside potential for further growth in reserves and
resources,” commented Shaun Usmar, CEO. “This deal will be
partially funded by our credit facility and is expected to achieve
full payback within the minimum delivery period in the current gold
price environment.”
Key Terms
- Triple Flag will have the right to purchase 3% of payable gold
from each of Allied’s Agbaou mine (the “Agbaou Stream”) and Bonikro
mine (the “Bonikro Stream” and, collectively, the “Streams”).
- Under the Agbaou Stream, the gold stream rate will step down to
2% of payable gold after the delivery of 29,000 ounces of
gold.
- Under the Bonikro Stream, the gold stream rate will step down
to 2% of payable gold after the delivery of 39,300 ounces of
gold.
- Triple Flag will make ongoing payments of 10% of the spot gold
price for each ounce delivered under the Streams.
- The Streams are subject to a period of minimum deliveries. From
2024 to 2027, an annual minimum of approximately 2.50 to 2.75
thousand gold equivalent ounces (“GEOs”) will be delivered under
the Agbaou Stream and an annual minimum of 3.50 to 4.25 thousand
GEOs will be delivered under the Bonikro Stream.
- The Streams will cover the existing mining and exploration
licenses for the Agbaou and Bonikro mines.
- A parent guarantee will be provided by Allied on the
Streams.
- Triple Flag will work with Allied to identify social programs
in the communities surrounding Bonikro and Agbaou to support with
separate additional investment.
- Closing of the transaction is expected by late August
2024.
Asset Background
The Agbaou and Bonikro producing gold mines are located in Côte
d’Ivoire within the Birimian Greenstone Belt, approximately 20
kilometers apart, and operated as a single complex. On a combined
basis, Allied is targeting a production rate of 180 to 200 thousand
ounces per annum and a greater than 10-year mine life from the
complex, driven by an extensive exploration program.
The complex has a combined milling capacity of over 5 Mtpa to
leverage the large prospective land package, with a 2024
exploration budget of $6 million and $10.5 million at Agbaou and
Bonikro, respectively. Notably, the current exploration campaign at
Agbaou is the largest in the asset’s operating history, with a
near-term opportunity to boost oxide feed from Agbalé. At Bonikro,
the operator sees significant upside potential from Oume, with
planned drilling at Oume West and North, as well as resource
drilling at Akissi-So.
Agbaou
Agbaou is an open pit, producing gold mine with conventional
gravity and CIL processing. Endeavour Mining began construction of
the mine in 2012 and commenced operations in 2013. Allied
subsequently acquired the mine in 2021, which has produced over 1.3
million ounces of gold since start-up. Triple Flag owns a separate
2.5% NSR royalty interest in Agbaou, acquired in June 2023.
Allied’s production guidance for 2024 is 85 to 95 thousand
ounces of gold. The current life-of-mine plan contemplates a
minimum annual production profile of 90 thousand ounces until 2026,
with total gold production of over 465 thousand ounces through
2028. As of December 31, 2023, Proven Mineral Reserves totaled
1,815 thousand tonnes at a grade of 2.01 g/t Au, containing 117
thousand ounces of gold, and Probable Mineral Reserves totaled
6,092 thousand tonnes at a grade of 1.79 g/t Au, containing 351
thousand ounces. Measured Mineral Resources totaled 2,219 thousand
tonnes at a grade of 2.15 g/t Au, containing 154 thousand ounces of
gold, Indicated Mineral Resources totaled 11,130 thousand tonnes at
a grade of 1.96 g/t Au, containing 701 thousand ounces of gold, and
Inferred Mineral Resources totaled 959 thousand tonnes at a grade
of 1.84 g/t Au, containing 57 thousand ounces of gold. The Measured
and Indicated Mineral Resources are inclusive of those Mineral
Resources modified to derive the Mineral Reserves.
Further information can be found at: Allied Gold Corporation -
Mineral Reserves and Mineral Resources
Bonikro
Bonikro is an open pit, producing gold mine with conventional
gravity and CIL processing. The mine was built by Equigold in 2007
and acquired by Lihir in 2008, then operated by Newcrest from 2010
to 2017. Allied subsequently acquired the mine in 2019, which has
produced over 1.5 million ounces of gold since start-up.
Allied’s production guidance for 2024 is 95 to 105 thousand
ounces of gold, which is expected to increase to an average annual
minimum of 110 thousand ounces of gold due to higher-grade material
in 2025 and 2026 from Pushback 5. Proven Mineral Reserves totaled
4,771 thousand tonnes at a grade of 0.71 g/t Au, containing 108
thousand ounces of gold, and Probable Mineral Reserves totaled
8,900 thousand tonnes at a grade of 1.62 g/t Au, containing 462
thousand ounces. Measured Mineral Resources totaled 7,033 thousand
tonnes at a grade of 0.98 g/t Au, containing 222 thousand ounces of
gold, Indicated Mineral Resources totaled 25,793 thousand tonnes at
a grade of 1.41 g/t Au, containing 1,171 thousand ounces of gold,
and Inferred Mineral Resources totaled 19,588 thousand tonnes at a
grade of 1.30 g/t Au, containing 816 thousand ounces of gold. The
Measured and Indicated Mineral Resources are inclusive of those
Mineral Resources modified to derive the Mineral Reserves.
Further information can be found at: Allied Gold Corporation -
Mineral Reserves and Mineral Resources
About Triple Flag
Triple Flag is a pure play, precious-metals‐focused streaming
and royalty company. We offer bespoke financing solutions to the
metals and mining industry with exposure primarily to gold and
silver in the Americas and Australia, with a total of 236 assets,
including 17 streams and 219 royalties. These investments are tied
to mining assets at various stages of the mine life cycle,
including 32 producing mines and 204 development and exploration
stage projects, and other assets. Triple Flag is listed on the
Toronto Stock Exchange and New York Stock Exchange, under the
ticker “TFPM”.
Forward-Looking Information
This news release contains “forward-looking information” within
the meaning of applicable Canadian securities laws and
“forward-looking statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995,
respectively (collectively referred to herein as “forward-looking
information”). Forward-looking information may be identified by the
use of forward-looking terminology such as “plans”, “targets”,
“expects”, “is expected”, “budget”, “scheduled”, “estimates”,
“outlook”, “forecasts”, “projection”, “prospects”, “strategy”,
“intends”, “anticipates”, “believes”, or variations of such words
and phrases or terminology which states that certain actions,
events or results “may”, “could”, “would”, “might”, “will”, “will
be taken”, “occur” or “be achieved”. Forward-looking information in
this news release include, but are not limited to, statements with
respect to the closing of the acquisition of the two streams, and
all related matters thereto and developments in respect of the
Bonikro and Agbaou operations. In addition, any statements that
refer to expectations, intentions, projections or other
characterizations of future events or circumstances contain
forward-looking information. Statements containing forward-looking
information are not historical facts but instead represent
management’s expectations, estimates and projections regarding
possible future events or circumstances.
The forward-looking information included in this news release is
based on our opinions, estimates and assumptions considering our
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that we
currently believe are appropriate and reasonable in the
circumstances. The forward-looking information contained in this
news release is also based upon a number of assumptions, including
the ongoing operation of the properties in which we hold a stream
or royalty interest by the owners or operators of such properties
in a manner consistent with past practice; the accuracy of public
statements and disclosures made by the owners or operators of such
underlying properties; and the accuracy of publicly disclosed
expectations for the development of underlying properties that are
not yet in production. These assumptions include, but are not
limited to, the following: assumptions in respect of current and
future market conditions and the execution of our business
strategies, that operations, or ramp-up where applicable, at
properties in which we hold a royalty, stream or other interest,
continue without further interruption through the period, and the
absence of any other factors that could cause actions, events or
results to differ from those anticipated, estimated, intended or
implied. Despite a careful process to prepare and review the
forward-looking information, there can be no assurance that the
underlying opinions, estimates and assumptions will prove to be
correct. Forward-looking information is also subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance, or achievements to
be materially different from those expressed or implied by such
forward-looking information. Such risks, uncertainties and other
factors include, but are not limited to, those set forth under the
caption “Risk Factors” in our most recently filed annual
information form which is available on SEDAR+ at www.sedarplus.ca
and on EDGAR at www.sec.gov. For clarity, mineral resources that
are not mineral reserves do not have demonstrated economic
viability and inferred resources are considered too geologically
speculative for the application of economic considerations.
Although we have attempted to identify important risk factors
that could cause actual results or future events to differ
materially from those contained in forward-looking information,
there may be other risk factors not presently known to us or that
we presently believe are not material that could also cause actual
results or future events to differ materially from those expressed
in such forward-looking information. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such information. Accordingly, readers should not place undue
reliance on forward-looking information, which speaks only as of
the date made. The forward-looking information contained in this
news release represents our expectations as of the date of this
news release and is subject to change after such date. We disclaim
any intention or obligation or undertaking to update or revise any
forward-looking information whether as a result of new information,
future events or otherwise, except as required by applicable
securities laws. All the forward-looking information contained in
this news release is expressly qualified by the foregoing
cautionary statements.
Cautionary Statement to U.S. Investors
Information contained or referenced in this press release or in
the documents referenced herein concerning the properties,
technical information and operations of Triple Flag has been
prepared in accordance with requirements and standards under
Canadian securities laws, which differ from the requirements of the
U.S. Securities and Exchange Commission (“SEC”) under subpart 1300
of Regulation S-K (“S-K 1300”). Because the Company is eligible for
the Multijurisdictional Disclosure System adopted by the SEC and
Canadian Securities Administrators, Triple Flag is not required to
present disclosure regarding its mineral properties in compliance
with S-K 1300. Accordingly, certain information contained in this
press release may not be comparable to similar information made
public by US companies subject to reporting and disclosure
requirements of the SEC.
Technical and Third-Party Information
Triple Flag does not own, develop or mine the underlying
properties on which it holds stream or royalty interests. As a
royalty or stream holder, Triple Flag has limited, if any, access
to properties included in its asset portfolio. As a result, Triple
Flag is dependent on the owners or operators of the properties and
their qualified persons to provide information to Triple Flag and
on publicly available information to prepare disclosure pertaining
to properties and operations on the properties on which Triple Flag
holds stream, royalty, or other similar interests. Triple Flag
generally has limited or no ability to independently verify such
information. Although Triple Flag does not believe that such
information is inaccurate or incomplete in any material respect,
there can be no assurance that such third-party information is
complete or accurate.
Qualified Person
James Lill, Director, Mining for Triple Flag Precious Metals and
a “qualified person” under NI 43-101 has reviewed and approved the
written scientific and technical disclosures contained in this
press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20240807780240/en/
Investor Relations: David Lee Vice President, Investor
Relations Tel: +1 (416) 304-9770 Email: ir@tripleflagpm.com
Media: Gordon Poole, Camarco Tel: +44 (0) 7730 567 938
Email: tripleflag@camarco.co.uk
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