Talisker Resources Ltd. (TSX: TSK | OTCQX: TSKFF) has entered into a royalty agreement with Sprott Resource Streaming and Royalty Corp. in relation to the company’s wholly-owned Bralorne Gold Project.
Terry Harbort, president and CEO of Talisker, stated, “This non-dilutive funding package delivers a major catalyst to Talisker, providing the necessary capital for the pathway to long-term production at Bralorne. The flexible deal provides the necessary upfront funds for infill drilling and development while protecting the project’s considerable resource and exploration upside with buyback and capping optionality. Following on from our strong resource statement earlier in the year, we look forward to advancing Bralorne to the next stage.”
Under the terms of the agreement, Sprott will pay the Company up to US$31,250,000 for a net smelter returns royalty covering all minerals produced from the project.
A maximum of US$31,250,000, with a minimum consideration of US$18,750,000, payable as to an initial grant of a 1.12% Royalty for a draw of US$7,000,000 for drilling, detailed engineering and working capital.
A further 1.88% Royalty for a subsequent draw of US$11,750,000 on, among other things, the signing of a toll milling agreement for mobilization, site infrastructure, resource conversion drilling, and working capital and up to a further 2% Royalty, to a maximum of a 5% Royalty, for US$12,500,000 available as needed for site infrastructure, mine start-up capital and working capital.
Additionally, an option, exercisable solely at the discretion of the company until 31 December 2028, to repurchase 50% of the royalty.
The residual royalty will be reduced by an additional 50% for no additional consideration following 1.5Moz of gold production. Closing of the initial 1.12% royalty is subject to customary closing conditions and is expected to occur mid-June 2023.
Michael Harrison, managing partner, Sprott Resource Streaming and Royalty Corp. commented, “As a permitted high-grade Canadian asset with known metallurgy and exceptional grade and vein continuity, we are pleased to partner with Talisker and provide assistance in re-igniting Bralorne as British Columbia’s largest historic gold producer.”
To find out more, please visit www.taliskerresources.com
