Post by
Possibleidiot01 on Apr 07, 2021 4:30pm
royalty deal with FNV
Very very smart move that allows them to use the cash for mine development , giving them an option to buy the royalty after three years and production has started.
"This partnership with Franco-Nevada allows Roxgold to retain maximum interest in the project while protecting our balance sheet to deliver Sgula without requiring any equity dilution to our shareholders. The combination of the two transactions is cash neutral for Roxgold while enhancing our buy-back rights under the new NSR agreement until Sgula is producing cashflow, providing significant value to Roxgold by maintaining optionality as the value of Sgula continues to grow.'
All this achieved with no cash cost