Appleby has assisted Allied Gold Corporation (Allied), a Canadian-based gold producer with production and exploration assets in Africa and listed on the Toronto Stock Exchange, on the closing of its streaming transaction (Stream Transaction) with Triple Flag International Ltd., a wholly-owned subsidiary of Triple Flag Precious Metals Corp. (collectively Triple Flag) and another streaming transaction with a gold royalty company.
Under the terms of the Stream Transaction, Allied has a received a USD53 million upfront cash payment and will receive ongoing payments equal to 10% of the spot gold price for a portion of its production. Triple Flag will have the right to purchase 3% of the payable gold related to production at each of the Agbaou and Bonikro mines, subject to a step-down to 2% after set delivery thresholds.
The closing of this transaction crystallizes significant value in Allied’s Côte d’Ivoire Complex (CDI Complex) and provides the financial flexibility to advance exploration, growth, and optimization initiatives. The CDI Complex, comprising the Agbaou and Bonikro mines, remains a central element of Allied’s growth strategy.
Allied continues to advance its stream and gold prepay financing for its Kurmuk Gold Project and evaluate how to redeploy cash flows otherwise previously allocated to Kurmuk and the CDI Complex toward the advancement of its expansion plans at Sadiola. The Kurmuk Gold Project, located in western Ethiopia, represents a key development for Allied and the region, which aims to be one of the lowest-cost gold mines in the world.
The financing was led by National Bank Financial as financial advisor and Cassels Brock & Blackwell LLP as Canadian legal advisor.
Appleby provided Mauritius, Seychelles and Cayman Islands law advice on the transaction. The Mauritius and Seychelles team comprised Group Managing Partner Malcolm Moller and Senior Associate Karishma Beegoo. The Cayman Islands team comprised Partner Fiona Chan, Associate Angelina Wong and Legal Manager Fanny Or.
