Versamet (NASDAQ:VMET) has significantly bolstered its precious metals portfolio, announcing a definitive agreement to acquire a 3.52% life-of-mine gold stream on Skeena Resources’ high-grade Eskay Creek project for a total consideration of $360 million.
The transaction structure includes $340 million in cash and $20 million in Versamet common shares.
The uncapped stream entitles Versamet to receive 3.52% of all gold produced at the British Columbia-based site for its entire operational life.
During the first five years of full production, the deal is expected to deliver approximately 10,000 ounces of gold per year to Versamet.
Under the terms of the agreement, Versamet will provide ongoing per-ounce payments to Skeena equal to 10% of the spot gold price at the time of delivery.
This "low-cost" capture mechanism provides Versamet with significant leverage to rising gold prices while insulating the company from the direct inflationary pressures of mine operations.
The Eskay Creek project, once the highest-grade gold and silver mine in the world, is currently undergoing a massive revitalization.
Skeena reported that construction is 49% complete, with the project remains on track for its first gold pour in the second quarter of 2027.