US miner Royal Gold has announced its subsidiary RGLD Gold AG signed a life of mine purchase and sale agreement with Khoemacau Copper Mining to acquire 80% of the silver pro-duced from the Khoemacau copper project in Botswana.
The deal foresees an optional payment of a further $53 million for up to the remaining 20% of the silver produced by the African asset.
"The Khoemacau stream will fit nicely into our production profile and will add another component of growth," Tony Jensen, the president and chief executive of Royal Gold, said in a statement. "Coupling our stream with the Red Kite Mine Finance … debt facility also an-nounced today, Khoemacau is now fully funded and development ac-tivities can accelerate, with initial production and stream deliveries expected in the first half of 2021."
Based in Denver, Royal Gold says it is publicly traded on the NASDAQ Global Select Market