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Allied Gold Announces $53 Million Streaming Agreement With Triple Flag Precious Metals
TORONTO, Aug. 7, 2024 /CNW/ - Allied Gold Corporation (TSX: AAUC) ("Allied" or the "Company") is pleased to announce that it has entered into a streaming transa
About this update from Allied Gold Corporation
[{"type":"text","content":" TORONTO, Aug. 7, 2024 /CNW/ - Allied Gold Corporation (TSX: AAUC) (\"Allied\" or the \"Company\") is pleased to announce that it has entered into a streaming transaction (the \"Stream Transaction\") with Triple Flag International Ltd., a wholly-owned subsidiary of Triple Flag Precious Metals Corp. (collectively, \"Triple Flag\"). Under the terms of the agreement, Allied will receive a US$53 million upfront cash payment (the \"Advance Amount\") and an ongoing payment equal to 10% of the spot gold price. Triple Flag will have the right to purchase 3% of the payable gold produced at each of the Agbaou and Bonikro mines, subject to a step-down to 2% after set delivery thresholds. The Stream Transaction crystallizes significant value in Allied's Côte d'Ivoire Complex (CDI Complex), and enables the advancement of initiatives designed to incrementally increase asset value beyond the life of mine plans, unlocking upside potential without diminishing shareholder equity value. \"We are delighted to partner with Triple Flag on this streaming agreement. This transaction not only underscores the inherent value of our Côte d'Ivoire assets, as it implies a valuation multiple significantly higher than that at which the Company went public and the price at which the Company's shares currently trade in the market, but it also provides us with the financial flexibility to advance our exploration, growth, and optimization initiatives at a competitive cost of capital, which is significantly better than other alternatives evaluated, including equity financing,\" commented Peter Marrone, Chairman and CEO. \"Our goal is to unlock significant value for our shareholders while ensuring sustainable and responsible growth across our impressive asset portfolio. In the case of the CDI Complex in particular, this transaction allows us to accelerate the realization of its significant upside value.\" Key Terms Triple Flag will have the right to purchase 3% of payable gold from each of the Company's Agbaou mine (the \"Agbaou Stream\") and Bonikro mine (the \"Bonikro Stream\" and, collectively, the \"Streams\"). Under the Agbaou Stream, the gold stream rate will step down to 2% of payable gold after the delivery of 29,000 ounces of gold (\"ozs\"). Under the Bonikro Stream, the gold stream rate will step down to 2% of payable gold after the delivery of 3...