Repadre Capital (RPD-T) will buy a portion of Far East Gold’s (FEGI-C) net smelter return royalties from future production generated at the Ametistovoe deposit.
Repadre can buy a sliding-scale royalty for approximately $5 million. The royalty rate begins at 5% until capital repayment, though it can slide to as low as 1%.
The transaction is scheduled to close at the end of October, pending due diligence and regulatory approval.
Far East will use the proceeds to buy equipment required to bring the deposit into production. Situated in eastern Russia, the Ametistovoe hosts an estimated proven and probable reserve of 7.5 million tonnes grading 10.5 grams gold and 48 grams silver per tonne. Startup is scheduled for mid-1997.
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