Galiano Gold cancels royalty deal with Red Kite
GALIANO Gold said on Thursday it had terminated a gold purchase and sale agreement with Red Kite Opportunities Master Fund Limited paying $13m.In terms of the agreement with Red Kite, a royalty stream firm, Galiano Gold was required to sell 100% of gold production from the Asanko Gold Mine in Ghana up to a maximum of 2.2 million ounces, at a spot price selected by Red Kite during a nine-day quotational period following shipment of gold from the AGM.At the time of termination, the AGM had delivered just over 1.7 million gold ounces to Red Kite in terms of the agreement.Over the past two years, during a period of elevated gold prices and volatility, the differential between the AGM’s realised gold price under the agreement and the spot price of gold on the gold delivery date, has resulted in a discount of approximately 2%, the New York-listed firm said.“With the company’s strong, debt-free balance sheet, we are pleased to have the financial flexibility to terminate this legacy offtake agreement as part of our prudent capital allocation strategy,” said Matt Badylak, CEO of Galiano.“This strategic investment allows the AGM to sell gold at market prices, delivering meaningful value as we advance our business plan,” he added.Shares in Galiano Gold closed on Wednesday about two percent weaker but have registered a year-to-date gain of just over 45% valuing the company at $354m.The post Galiano Gold cancels royalty deal with Red Kite appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com
Quelle: Mining.com
