…FQM forms subsidiary, Royal Gold, in Canada, to receive $1billion upfront from Kansanshi Copper & Gold Company…
…FQM will receive full sum upfront in exchange for future gold produced as a by-product at its Kansanshi copper mine, in Zambia…..
Canadian miner First Quantum Minerals (TSX: FM) has secured a $1 billion gold streaming deal with a subsidiary of Royal Gold (NASDAQ: RGLD), the companies announced Tuesday.
The agreement provides First Quantum with the full sum upfront in exchange for future gold produced as a by-product at its Kansanshi copper mine, in Zambia. In a gold streaming arrangement, the buyer pays upfront for the right to purchase a portion of future gold production, usually at a predetermined, discounted rate.
Canada’s First Quantum has signed a US$1 billion agreement with Royal Gold, granting rights to future gold output from its Kansanshi copper-gold mine in Zambia.
The deal delivers upfront non-debt capital, helping First Quantum reduce leverage while maintaining over 80% exposure to its gold production. For Royal Gold, it means steady gold deliveries (~35,000–40,000 oz/year) from a long-life, low-cost operation.
A strategic win for both sides—unlocking value without dilution.
First Quantum Minerals (FQM) owns and operates a variety of mining and exploration companies around the world.
Key subsidiaries include FQM Trident Limited (formerly Kalumbila Minerals Ltd) in Zambia, which operates the Sentinel and Enterprise mines, and Kansanshi Mining PLC, also in Zambia, where FQM holds an 80% stake.
Additionally, FQM owns the Cobre Panama mine and held strategic investments in companies like Mopani Copper Mines.
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