Vatukoula Gold Mines Pte. Ltd. closes first tranche of its previously announced US$30 million gold stream and royalty agreement transaction with Sandstorm Gold Ltd.

On December 23, 2021, Vatukoula Gold Mines Pte. Ltd. ("VGM") closed the first tranche of its previously announced US$30 million gold stream and royalty agreement transaction (the “Gold Purchase Agreement”) with Sandstorm Gold Ltd. (“Sandstorm”). Under the terms of the Gold Purchase Agreement, Sandstorm will receive 25,920 ounces of gold over six years followed by 2.55%–2.9% of the gold production from the Vatukoula gold mine in Fiji (the “Vatukoula Mine”) mining licenses, which cover 12.5 square kilometres plus a five kilometre area of interest. Sandstorm will also receive a 1.0% net smelter returns (“NSR”) royalty on VGM’s interest in certain prospecting licenses, plus a five kilometre area of interest. VGM currently holds a 45% interest in these licenses, for an effective 0.45% NSR royalty on a 195 square kilometres land package.

The Vatukoula Mine is an underground gold mine located on the main island Viti Levu in Fiji. The mine has produced more than 7 million ounces of gold over the last 85+ years. Since 2013, annual mine production has averaged 30,000–40,000 ounces per year. VGML plans to expand underground operations with a production target of 50,000–70,000 ounces per year in the next 3–5 years.

VGM’s beneficial owner is Zhongrun Resources Investment Corp (“Zhongrun”), a public company listed on the Shenzhen Stock Exchange (SZSE:000506). Zhongrun’s operations are primarily focused on mining investments and real estate.

Fasken’s Canadian and United Kingdom offices represented VGM with a team that included Michael Boehm (Fasken Ottawa), Andrew Gabrielson and KC Miu (Fasken Vancouver) and Thomas Wexler and Yanal Abul Failat (Fasken London).