Completed Acquisition Yields New 'Growth-Oriented Royalty Vehicle'

Terraco Gold Corp. (TEN:TSX.V; TCEGF:OTCPK) announced in a news release that the acquisition of it by Sailfish Royalty Corp. (FISH:TSX.V; OTC:SROYF), according to the approved plan of arrangement, is complete.

"This is a great opportunity to continue on for further exposure to a diverse portfolio of royalties, with exposure to a multimillion ounce gold project portfolio and benefiting from a strong financial backing and an increased capital markets profile," Todd Hilditch, former Terraco president and CEO, said in the release.

Sailfish CEO Akiba Leisman also commented in the release, "This exciting transaction brings together our combined royalty portfolios into a new, growth-oriented royalty vehicle."

The combined entity owns numerous precious metals royalties in various stages from exploration production, and those royalties are shared by well-established companies, such as Eldorado Gold, Endeavour Silver and Waterton.

The new company also features geographic diversification, having projects in the U.S. (Nevada), Mexico, Brazil and Nicaragua along with a "platform for additional royalty consolidation in the precious metals space," the release noted.

Possible near-term, value-creating moves include monetizing or spinning off the Gavilanes and Almaden-Nutmeg Mountain assets, the company noted.

Also announced in the release is that Sailfish fully repaid the $12,031,055 outstanding senior unsecured convertible debenture held by a subsidiary of the Waterton Precious Metals Fund II Cayman L.P. This means Sailfish shareholders now own an unencumbered royalty of up to a 3% net smelter return on Spring Valley, one of the "best known, undeveloped gold mining properties in Nevada," Leisman described.

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