El Salvador president proposes bill to overturn metals mining ban
In 2017, El Salvador became the first country in the world to ban forms of metals mining.
Triple Flag Precious Metals (TSX: TFPM) announced Friday the acquisition of three pre-existing royalties on properties located near Gold Fields Ltd.’s Salares Norte project in Chile. Total consideration for the royalties was $4.9 million.
The royalties, which comprise 2% net smelter returns on each of the Aster 2, Aster 3 and Helada properties, were previously held by a private third party. These properties cover prospective exploration ground that Gold Fields has been exploring.
The Salares Norte project is currently under construction, with anticipated first production in 2023.
Once operational, the open-pit mine is forecast to have an average annual production of 450,000 gold-equivalent ounces per year for the first seven years, decreasing to around 355,000 gold-equivalent ounces for the following three years.
The royalties include buy-down provisions that would reduce the amount of each NSR royalty from 2% to 1%.
The amount to be received by Triple Flag if the buy-down provisions are exercised would be $2 million for the Aster 2 royalty and $4 million for each of the Aster 3 and Helada royalties.
