The deal allows Nomad to add one of Canada’s largest gold mines with 5.54 million ounces in proven and probable mineral reserves grading 1.27g per tonne gold
Nomad Royalty has signed $95m gold purchase agreement with a subsidiary of Orion Mine Finance for the Greenstone gold project located in Ontario, Canada.
Orion owns a 40% stake in Greenstone Gold Mines (GGM), which owns and operates the the project. Equinox Gold owns the remaining 60% stake in the Greenstone project.
The joint ownership and development project is comprised of Kenogamisis, Brookbank and Viper properties.
The deal allows Nomad to add one of Canada’s largest gold mines with 5.54 million ounces in proven and probable mineral reserves grading 1.27g per tonne gold.
GGM intends to construct and operate an open-pit gold mine, processing plant and ancillary facilities for the gold project.
The Greenstone project is situated around 275km northeast of the city of Thunder Bay, Ontario and approximately 4kms south of the town of Geraldton, Ontario.
With an initial mine life of 14 years, GGM is aiming to mine the Hardrock deposit as a 27,000 tonnes-per-day open-pit mine.
Nomad CEO Vincent Metcalfe said: “The addition of the Greenstone Gold Stream strengthens our portfolio and adds near-term production from a fully permitted project located in Ontario, a premier mining jurisdiction.
“This transaction is consistent with Nomad’s strategy of building a cash flow focused precious metals royalty and stream portfolio.”
Under the terms of the gold stream agreement, Nomad will receive 5.938% of gold production attributed to Orion’s 40% stake in the project, until the delivery of 120,333 ounces of gold.
Later, the company will be entitled to deliver of 3.958% gold produced at the site.
According to Nomad, the gold stream agreement is applicable to all mining claims, mining leases and other similar mining rights currently covered by the Greenstone project.
Recently, Equinox Gold and its partner have launched the full-scale construction on its Greenstone gold mine, with an aim to achieve first gold pour in the first half of 2024.