The combined, diversified company states it
intends to aggressively grow its portfolio.
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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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and
provides services to Streetwise Reports as an independent contractor. She or
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