Acacia has agreed to divest a non-core royalty over the Houndé mine in Burkina Faso for total consideration of US$45 million.
The existing 2% net smelter royalty has been owned by Acacia and its predecessor companies since 2010. Following a competitive process the royalty has been purchased by Sandstorm Gold Ltd, a TSX- and NYSE-listed company.
Acacia’s decision to dispose of this royalty follows the announcement of commercial production at the mine in October and is consistent with the company’s disciplined approach to capital allocation. The transaction is expected to close in early 1Q18 and, together with the measures taken at both Bulyanhulu and Buzwagi to reduce cash outflows, will provide further strength to our balance sheet.