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Star Royalties Closes Second US$6 Million Installment of US$18 Million Stream Financing for the Restart of the Copperstone Gold Mine
(TheNewswire) F ebruary 24, 2021 - TheNewswire - T oronto...
About this update from Star Royalties Ltd
[{"type":"text","content":"Star Royalties Closes Second US$6 Million Installment of US$18 Million Stream Financing for the Restart of the Copperstone Gold Mine\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n F\n \n \n ebruary\n \n \n 24, 2021 -\n \n \n TheNewswire -\n \n \n T\n \n \n oronto\n \n \n , ON - Star Royalties\nLtd.\n \n \n (the “\n \n \n Company\n \n \n ” or\n“\n \n \n Star Royalties\n \n \n ”) (TSXV:STRR) is pleased to announce the closing of the\nsecond installment of its previously announced US$18,000,000 gold\npurchase and sale agreement (the “\n \n \n Streaming Agreement\n \n \n ”) with\n \n \n Arizona Gold Corp.\n(“\n \n \n Arizona Gold\n \n \n ”) (TSX: AZG, OTC: AGAUF) (formerly Kerr Mines Inc.)\n \n \n which will be used to finance the restart of\nunderground operations and gold production at the Copperstone Gold\nMine (“\n \n \n Copperstone\n \n \n ”) in Arizona, USA.\n \n \n \n \n Alex Pernin, Chief Executive Officer of Star Royalties,\ncommented: “With the closing of Tranche 2 and an expected\noperational restart in less than one year, this gold stream represents\nsignificant, near-term cash flow from a highly prospective deposit in\na world-class jurisdiction. We have great confidence in both\nCopperstone’s potential and Arizona Gold’s ability to execute a\nsuccessful restart of operations. We continue to look forward to\nworking closely with their team as we transition Copperstone into\nArizona’s next producing gold mine.”\n \n \n \n \n The US$18 million advance payment under the Streaming\nAgreement is being provided in three equal installments, with the\nfirst two US$6 million installments having now been advanced. The\nfinal US$6 million installment will be payable on or before April 30,\n2021, subject to certain closing conditions.\n \n \n \n \n Summary of Transaction Terms\n \n \n \n \n \n \n - Star Royalties will purchase from Arizona Gold an\namount of refined gold equal to 9.9% of gold produced at Copperstone\nuntil a cumulative 21,000 ounces of refined gold are delivered, then\n3.3% of gold produced until a cumulative 27,200 ounces are delivered,\nand 1.2% of gold produced thereafter for the remaining life of\nmine.\n \n \n \n \n - In addition to the US$18 million advance payment,\nStar Royalties will provide a cash pay...