The Salares Norte gold project is located in the Atacama region of northern Chile. (Image courtesy of Gold Fields Chile.)
Triple Flag Precious Metals (TSX: TFPM) announced Friday the acquisition of three pre-existing royalties on properties located near Gold Fields Ltd.’s Salares Norte project in Chile. Total consideration for the royalties was $4.9 million.
The royalties, which comprise 2% net smelter returns on each of the Aster 2, Aster 3 and Helada properties, were previously held by a private third party. These properties cover prospective exploration ground that Gold Fields has been exploring.
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The Salares Norte project is currently under construction, with anticipated first production in 2023.
Once operational, the open-pit mine is forecast to have an average annual production of 450,000 gold-equivalent ounces per year for the first seven years, decreasing to around 355,000 gold-equivalent ounces for the following three years.
The royalties include buy-down provisions that would reduce the amount of each NSR royalty from 2% to 1%.
The amount to be received by Triple Flag if the buy-down provisions are exercised would be $2 million for the Aster 2 royalty and $4 million for each of the Aster 3 and Helada royalties.