Versamet acquires Rosh Pinah silver stream

Executive Summary

• Versamet Royalties Corp. acquired a 90 % silver stream on Namibia’s Rosh Pinah zinc mine and a 2.75 % NSR royalty on Brazil’s Santa Rita nickel‑sulphide mine for $125 million cash plus up to $45 million contingent payments.
• The transaction is financed through an amended credit facility totaling $180 million (revolving $100 M, term $80 M) and expands Versamet’s portfolio to seven paying royalties/streams across six countries.
• Forecasted production rises to >10,000 GEOs in 2025 and >20,000 GEOs in 2026, with ~83 % from precious metals, supporting accelerated growth and upcoming U.S./TSX main‑board listings.

Key Details

• Purchase price: $125 M cash at closing; up to $45 M contingent on Santa Rita milestones (first 1 Mt underground ore processed – $22.5 M; throughput of 12,500 t/d for 90 days – $22.5 M), both payable before July 1 2035.
• Effective date of stream/royalty: July 1 2025.

Rosh Pinah Silver Stream

• Entitles Versamet to 90 % of payable silver; after delivery of 3.1 M oz, entitlement reduces to 45 % for the mine’s remaining life.
• Pays 10 % of spot silver price per ounce delivered.
• Payable silver calculated as:
• 4,000 oz per million lbs zinc recovered until 250,000 oz delivered, then 2,850 oz per million lbs zinc.
• Production index terminates at the earlier of 1.35 M oz delivered or Dec 31 2028; thereafter payable silver based on actual production.

Santa Rita NSR Royalty

• Uncapped 2.75 % net smelter return covering 100 % of open‑pit and underground deposits plus Atlantic Nickel’s landholdings (~40,000 ha).

Asset Overviews

• Rosh Pinah (Namibia): 2024 processed 650,000 t ore → 87 M lbs Zn, 14 M lbs Pb, 244,000 oz Ag. RP2.0 expansion ~80 % complete; target to double throughput to ~1.3 M t/yr by Q3 2026. NI 43‑101 reserves: 12.35 M t (6.41 % Zn, 1.36 % Pb, 19.8 g/t Ag).
• Santa Rita (Brazil): 2024 processed 6.6 M t ore → 31.8 M lbs Ni, 10.1 M lbs Cu, 600,000 lbs Co. Open‑pit capacity ~6.5 M t/yr; underground development under evaluation to extend mine life. Historical reserves: 34.8 M t (0.31 % Ni, 0.11 % Cu).

Financing

• Amended & restated credit facility:
• Revolving line increased from $60 M to $100 M (maturing Apr 2028).
• New term loan of $80 M (maturing Mar 2028).
• Accordion feature raised to $25 M, available after full repayment of the term facility.
• Quarterly term repayments: $7.5 M starting 31 Mar 2026; final bullet $20 M on 31 Mar 2028.
• Permitted acquisitions basket expanded from $45 M to $125 M.

Post‑Closing Outlook

• Portfolio now includes seven paying royalties/streams in six countries (total portfolio: 28 royalties/streams).
• GEO production guidance: >10,000 GEOs in 2025; >20,000 GEOs in 2026 (≈83 % from gold/silver).
• Accelerated deleveraging expected as cash flow from new assets ramps up.

Notable Quotes

“Securing uncapped, long‑life and growing exposure to silver and nickel‑copper production meaningfully enhances Versamet’s cash‑flow engine and growth trajectory while continuing our strategy of accretive acquisitions.” – Dan O’Flaherty, CEO, Versamet Royalties Corp.