- § US$170 million sale of Appian’s polymetallic royalty in Atlantic Nickel assets and silver stream interest in Rosh Pinah Zinc for US$125 million upfront cash and a further US$45 million upon contingent milestones being met
- § It demonstrates the market’s confidence in the performance and long-term potential of the Appianmanaged projects, showcasing Appian’s ability to optimize the long-term value of its assets
- § The transaction represents the 5th and 6th royalties sold by Appian, and the 15th and 16th successful exits delivered on behalf of its investors
Appian Capital Advisory Limited (“Appian”), the investment advisor to long-term value-focused private capital funds that invest in companies in metals, mining and adjacent industries, announces it has closed an agreement with Versamet Royalties Corporation (“Versamet”) to sell a 2.75% net smelter return royalty (“NSR”) on Atlantic Nickel’s Santa Rita polymetallic mine in Brazil (the “Royalty”) and a silver stream on Rosh Pinah Zinc’s mine in Namibia (the “Silver Stream”) for an up-front cash consideration of US$125 million and a contingent consideration of up to US$45 million. The transaction follows competitive sales processes that attracted interest from a broad range of market participants.
The 2.75% NSR royalty on Atlantic Nickel’s Santa Rita mine covers the open-pit and underground deposits, as well as the entirety of Atlantic Nickel’s current land holdings in the area, representing an area of over 40,000 hectares. As part of the agreement, Versamet will pay up to an additional US$45 million in cash consideration upon the following milestones being achieved at Santa Rita:
- § US$22.5 million upon the processing of the first 1.0 million tonnes of underground ore at Santa Rita, provided that occurs prior to July 1, 2035; and
- § US$22.5 million upon Santa Rita achieving a throughput rate of 12,500 tonnes per day from underground ore over a 90-day period, provided that occurs prior to July 1, 2035
Under the Silver Stream, Versamet is entitled to receive refined silver equal to 90% of the payable silver production from Rosh Pinah Zinc. After a total of 3,100,000 ounces of silver have been delivered, Versamet will be entitled to receive 45% of the payable silver for the remaining life of the mine. Versamet will pay 10% of the spot silver price for each ounce delivered.
Both assets, which are majority-owned by Appian, are currently advancing expansion projects aimed at realizing their long-term potential through optimizing and extending mine production.
Appian is advancing an underground transition at Atlantic Nickel’s Santa Rita mine. A prefeasibility study, delivered in 2024, reinforced confidence in the underground extension, projecting a mine life of more than 20 years, a higher production rate and a lower cost structure.
Rosh Pinah Zinc’s expansion project comprises further development of the underground mine, as well as the construction of new surface facilities, including a new processing plant, the addition of a paste fill and water treatment plant, and a newly developed portal and decline to extended underground deposits. The project will almost double the mine’s production output to 170 million lb/year of contained zinc metal. Construction of the surface facilities is now over 80% complete and remains on budget. Construction completion is expected in Q3 2026, with ramp-up commencing in quick succession.