OR Royalties acquires additional 1% NSR on Namdini

Executive Summary

• OR Royalties Inc. has acquired the remaining 50% interest in a 2.0% Net Smelter Return (NSR) royalty on the Namdini gold mine in Ghana from Savannah Mining Ltd., effectively doubling its royalty position on the asset.
• The total consideration for the transaction is up to $103.5 million USD, structured with an initial payment, milestone-based payments, and deferred installments.
• The acquisition adds immediate gold equivalent ounces to OR Royalties' portfolio, as the Namdini mine commenced production in the first half of 2025 and is ramping up toward a peak production of approximately 360,000 ounces of gold per year.

Key Details

• Transaction Structure: OR Royalties acquired Savannah Mining Ltd.'s remaining 50% interest in the 2.0% NSR royalty on the Namdini gold mine.
• Total Consideration: Up to $103.5 million USD.
• Payment Schedule:
  • Initial Payment: $28.5 million paid upon closing.
  • Milestone Payments: $70.0 million payable upon certain milestones expected to occur over the next two quarters.
  • Deferred Payments: Remaining $5.0 million payable in two equal installments on the first and second anniversaries of the closing date.
• Effective Date: October 1, 2025.
• Security Interests: OR Royalties retained certain security interests over the assets of Savannah as part of this and the 2023 transaction.
• Production Profile (Namdini Mine):
  • Current Status: Gold production commenced in the first half of 2025; currently in final phases of ramp-up.
  • Peak Production: Approximately 360,000 ounces of gold per year over the first three years (at design capacity of 9.5 million tonnes per annum).
  • Long-term Average: Expected average of 287,000 ounces of gold per year over an initial 15-year life of mine.
  • First Payment: Expected in Q1 2026, representing Q4 2025 production.
• Operator: Shandong Gold Co Ltd. (via subsidiary Cardinal Namdini Mining Ltd.), partnered with a subsidiary of China Railway Construction Group Corp. Ltd.
• Reserve Data (from Oct 2019 Feasibility Study):
  • Total Proven and Probable Ore Reserve: 138.6 million tonnes at 1.13 g/t gold.
  • Contained Gold: 5.1 million ounces.
  • Composition: 92% of contained gold is within the probable ore reserve category.
• Jurisdiction: Ghana, ranked sixth globally and first in Africa for gold production in 2024.

Notable Quotes

• Jason Attew, President and CEO of OR Royalties: "Today's announcement underscores a couple of key points: first, OR Royalties' confidence in the Namdini gold mine, as we are effectively doubling down on a pre-existing asset within our portfolio of producing royalties; and second, our company's ability to work bilaterally with key partners across our network of industry participants in order to secure yet another accretive precious metals royalty transaction."