How streaming precious metals is key to seeking capital
So what exactly is precious...
Finding new capital in the mining industry is crucial for the sustainability of a company, and of the industry as a whole.
So what exactly is precious metals streaming? Well, streaming in itself is when a funder makes an agreement with a mining company to purchase all or part of their precious metals production at a low, fixed, predetermined price.
The major benefit from the start comes from streaming companies offering capital before mine infrastructure is even built. This of course, allows the mine company to accelerate production or sales as it has the necessary capital to speed things along.
Silver Wheaton, the world’s largest precious metals streaming company, has streaming agreements with 22 operating mines and eight development stage products across the world.
The streaming model was pioneered and introduced just over 10 years ago and major mining companies such as Barrick Gold, Vale and Glencore all sold streams last year.
Newmont acquires Canada’s GT Gold in $325mn deal
Newmont, the world’s biggest gold miner, has acquired Canada’s GT Gold in a deal worth $325mn. The gold giant now controls the Tatogga gold-copper project in the Traditional Territory of the Tahltan Nation.
“With the acquisition of GT Gold and the Tatogga project in the highly sought-after Golden Triangle district of British Columbia, Canada, Newmont continues to strengthen our world-class portfolio,” commented Newmont President and CEO Tom Palmer.
“We look forward to continuing to build a respectful and meaningful relationship with the Tahltan Nation, including the community of Iskut. The relationships we have with Indigenous communities, First Nations and host communities are critical to the way we operate. We will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward as the Company understands and acknowledges that Tahltan consent is necessary for advancing the Tatogga project.”
Newmont’s acquisition includes the Tatogga project, comprised primarily of the Saddle North deposit, which has the potential to contribute future significant gold and copper annual production. There are also further exploration opportunities beyond the known deposits at Saddle North within the land package. The Tatogga project adds to Newmont’s existing interest in the prospective Golden Triangle through the company’s 50% ownership in the Galore Creek project.
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. A world-class portfolio of assets, prospects and talent is anchored in favourable mining jurisdictions in North America, South America, Australia and Africa. The American miner is celebrating its 100th anniversary this month.
With gold prices on the rise, the last six months has seen gold industry M&A activity accelerating. A recent Mckinsey report, advises that the industry need to be mindful of mistakes made during the previous gold price boom, when growth was chased unidirectionally by several companies.