Trident Royalties PLC (AIM:TRR) said it agreed to the sale of the Mercedes Gold-Silver Mine in Sonora, Mexico by Equinox Gold (TSX:EQX).
The group has an offtake agreement with Premier Gold, a subsidiary of Equinox, over the mine and will receive US$3.75mln in addition to royalty payments of US$307,600 already received.
An offtake agreement with Premier over the Greenstone project in Canada remains in place, Trident added, but now with a guarantee that the original annual offtake cap of 58,500 ounces will be delivered in full in 2024 and 2025.
Bear Creek Mining is buying the Mercedes Mine from Equinox.
Adam Davidson, Trident’s chief executive, said the Mercedes Mine was only a small part of the gold offtake portfolio acquisition in January 2022 and that the sale represents "excellent value".
“Within a few months, we will have more than recovered our initial investment for the entire Premier Offtake whilst retaining exposure to the world-class Greenstone asset, coupled with increased certainty over future revenue.”