Triple Flag acquires silver and gold streams

Key terms and transaction highlights

Precious metals streams with no step-downs in Peru

Triple Flag has the right to purchase 5% of payable silver and gold from each of the Arcata and Azuca mines (collectively, the ‘Streams’) for the life of the operations. There is no step-down in stream rates.

• Triple Flag will make ongoing payments of 10% of the spot silver or gold price for each ounce delivered under the Streams.
• The US$35 million upfront deposit for the Streams was advanced on closing, and the entirety of this upfront deposit will be used by Sierra Sun to restart Arcata – which is fully financed to commercial production – and advance Azuca.
• Sierra Sun’s obligations under the Streams will be secured in favour of Triple Flag. Triple Flag will have a continuing security interest over the property, assets, and undertakings of Sierra Sun, including a mortgage over the mines.
• Triple Flag and Sierra Sun will work together to identify social programmes in the communities surrounding Arcata and Azuca to support with separate additional investment.

Near-term cash flow with an established operator

The Streams are expected to have at least a 10-yr mine life, with annual GEOs forecast to ramp up to approximately 5000 – 6000 GEOs per year by 2028.

• Arcata is the core value driver for the Streams and is fully permitted for restart. Sierra Sun intends to restart the Arcata underground operation in multiple phases to generate cash flow.
• Separately, production is anticipated to start from Azuca by the end of 2029.

Significant exploration potential across a large land package in a proven mining district.

The Streams cover the existing mining and exploration licenses for each of the Arcata and Azuca mines.

• Arcata is a 34 827 ha property, hosting an 8751 ha high-density vein district. Total concessions at Azuca are 13 492 ha.
• The Streams also provide for coverage of any other commercially economic minerals that may be discovered on the properties in the future on similar terms to silver and gold.

Sheldon Vanderkooy, CEO, Triple Flag, commented:

“We are pleased to announce that we have acquired 5% silver and gold streams on the Arcata and Azuca mines in Peru from Sierra Sun, a well-established operator in the country.

“Collectively, Arcata and Azuca are expected to have at least a 10-yr mine life, with Sierra Sun targeting production to restart at Arcata in the near term. GEOs pursuant to the Streams are expected to rise over the course of the ramp-up to approximately 5000 – 6000 GEOs per year by 2028. There is no step-down in stream rates. The Sierra Sun management team have extensive experience in Peru and have provided mining and engineering services to some of the top mining companies operating in the country. We believe that Arcata and Azuca are exciting precious metals restart and development opportunities, respectively, with excellent exploration upside, and we look forward to our partnership with Sierra Sun.”

Read the article online at: https://www.globalminingreview.com/mining/07032025/triple-flag-acquires-silver-and-gold-streams/