Gold-focused company Treasury Metals has secured a $20m royalty financing for its Goliath gold complex (GGC) located in Northwestern Ontario, Canada.

Under the royalty agreement with an affiliate of Sprott Resource Streaming and Royalty (SRSR), Treasury Metals will receive a treasury consideration of $20m for a 2.2% net smelter returns royalty. It covers all minerals produced from the GGC for the life of the project.

GCC consists of Goliath, Goldlund and Miller gold projects, which have better access to the Trans-Canada highway and related power and rail infrastructure.

The company will use the proceeds from the financing to accelerate the project to a construction decision, including all economic studies, permitting, consultations and corporate G&A costs.

Treasury Metals president and CEO Jeremy Wyeth said: “We are extremely pleased to be announcing this transaction today and excited to bring on Sprott as a partner to help us move the Goliath Gold Complex forward toward construction and operation.

“With the desire to consider financing alternatives that are less dilutive to our shareholders, we undertook a process to explore the potential for the sale of a royalty that culminated in the agreement we announced today.”

Expected to be completed by the end of next month, the financing is subject to customary closing conditions.

The royalty will automatically minimise by 50% for no additional consideration by the firm upon the achievement of 1.5 million ounces of gold production.

The royalty will increase by 25% for no additional consideration by SRSR, if commercial production is not achieved by 31 December 2028.

In February last year, Treasury Metals said that the GCC will be developed as a combined open pit and underground mining operation with a pre-production cost of CAD233m ($182.27m).

The company also has various other projects across Canada, including Weebigee-Sandy Lake gold project JV, and grassroots gold exploration property Gold Rock.