Triple Flag completes $550m gold and silver streaming agreement

By Tony Zhang|06 August 2020
gold and silver streaming agreement

Allens has advised Triple Flag on its $550 million Northparkes streaming agreement.

Firms: Allens (Triple Flag); King & Wood Mallesons (China Molybdenum) 

Deal: Allens has advised Triple Flag Precious Metals on its metal streaming agreement with China Molybdenum to receive gold and silver by reference to the Northparkes mine in NSW.

Value: $550 million.

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Area: Energy and resources. 

Key players: The Allens team consisted of Jodi Reinmuth (partner), Ben Farnsworth (partner), Brittany Lawtie (associate) and Kate Strachan (associate).

Deal significance: The deal, which is expected to be completed by the end of July, is one of the biggest manufacturing acquisitions by an Australian-owned business in Australian business history according to Allens.

“While increasingly popular overseas over the past decade, metal stream financing is relatively rare in Australia,” said Ms Reinmuth.

“Triple Flag’s proven track record with streaming transactions was instrumental in its success in the competitive bid process for the Northparkes financing.”

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The deal gives Triple Flag rights to the majority of the gold and silver that will be produced at the mine in NSW until it receives 630,000 ounces of gold and 9 million ounces of silver.

The agreement will see Triple Flag make an upfront cash payment of US$550 million and ongoing payments of 10 per cent of the spot prices for gold and silver equal to: 54 per cent of the gold produced at Northparkes until a cumulative amount of 630,000 ounces is delivered, and 27 per cent of the gold once that threshold is met; and 80 per cent of the silver produced at Northparkes until a cumulative amount of 9 million ounces is delivered, and 40 per cent of the silver after that amount is delivered.

Mr Farnsworth added they were delighted to have advised Triple Flag on this innovative financing for a high-quality asset, “which builds on Allens’ extensive experience in the mining sector.

Triple Flag completes $550m gold and silver streaming agreement
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