Royalty Holder……........Terraco Gold
Revenue……………..…..……................nil
Mine Life...………..............................n.a.
Commodity……………….................Gold
Operator................................Waterton

#6 Spring Valley

Terraco Gold is yet another small gold explorer, turned royalty upstart.

Five years ago the company bought a royalty option over the Spring Valley gold project in the US. Previously owned by Barrick and Midway Gold, the project was sold to Waterton, the private equity group, when Midway went under.

Terraco has paid $19m to exercise the option, almost as much as Waterton paid for a 30 per cent slice of the project, which is in a prolific postcode, near the Cortez mine in Nevada. Waterton has meanwhile bought out Barrick, saying Spring Valley has a “highly prospective land package”.

Terraco's royalty is 1 to 3 per cent, giving it a “great platform” for further “royalty growth”, the company says. Earlier this month, it pulled in as a consultant Paul Zink, the former president of International Royalty Corp, which was sold to Royal Gold for $700m in 2010. Zink also previously plied his trade at Americas Bullion Royalty, which forfeited a royalty portfolio to debt lender Red Kite in 2013.

 

 

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