Osisko Gold Royalties (TSX: OR) has on a Brazilian聽gold project operated by Eldorado Gold聽(NYSE: EGO)(TSX: ELD) from Sailfish Royalty in a $10 million cash deal.
Tocantinzinho is a permitted and construction-ready gold project located in Brazil鈥檚 Para state.
Eldorado completed a feasibility study on the project in 2015 and published an updated . The document outlines an open-pit gold mine with an expected operative life of 10 years and annual gold production of 170,000 ounces at an all-in sustaining cost of $615 per ounce.
The Tocantinzinho聽open-pit gold mine project could run for 10 years with annual production of 170,000 ounces at an all-in sustaining cost of $615 per ounce
鈥淲e are pleased to gain exposure to a large, construction-ready gold project with upside potential at depth as well as its surrounding land package in an area of聽Brazil聽that hosts a number of operating mines,鈥� Osisko鈥檚 president聽Sandeep Singh said in the statement.
The deposit is open at depth with no drilling deeper than 400 metres, and the large, under-explored land package presents a great deal of additional exploration potential that may yield satellite mineralized bodies.聽
At the time of project construction, the operator may make a payment of $5.5 million to reduce the royalty percentage by 2% resulting in a royalty of 0.75%.
Osisko Gold Royalties reported earlier this month record operating cash margin for the second quarter of the year.
Preliminary revenues reached C$57.2 million ($46m) in the three months to June, with preliminary cost of sales (excluding depletion) of C$10.1 million ($8m), resulting in a record operating cash margin of approximately C$47.1 million ($38m).