Sentinel Metals acquires option to buy project royalty

• Sentinel Metals secured an exclusive option to buy out a 1% production royalty at its Columbia Gold-Silver Project.
• The deal fixes the purchase price at 500 ounces of gold, currently valued at approximately $3.1 million at spot price.
• The acquisition aims to systematically de-risk project development and lower effective aggregate royalty costs.

Sentinel Metals (ASX:SNM) has secured an exclusive option to acquire a 1% production royalty over 13 patented claims at its Columbia Gold-Silver Project in Montana.

The option fixes the purchase price at 500 ounces of gold, or roughly $3.1 million at current spot rates, to lower the site's resource-weighted royalty from roughly 3.8% to 3.2%.

"With Big Springs in Nevada now in the portfolio and the updated Columbia Resource targeted for November 2026, we are systematically working through the key items that can de-risk the future development of the project," said Sentinel Metals Managing Director Matt Herbert.

Sentinel can hold the option for up to seven years by paying 5 ounces of gold annually—which counts towards the final purchase price—before making a single balloon payment around the final investment decision.

The company stated that the transaction is expected to de-risk future project development ahead of an updated resource estimate targeted for November.

Following the announcement, the Sentinel Metals share price was up at $0.56.

The 13 claims host approximately 500,000 ounces of gold out of the project's total resource of 920,000 ounces.

Sentinel recently expanded its regional presence by adding the Big Springs asset in Nevada to its mineral portfolio.