HIGHLIGHTS
- US$170 million sale of Appian’s polymetallic royalty in Atlantic Nickel assets and silver stream interest in Rosh Pinah Zinc for US$125 million upfront cash and a further US$45 million upon contingent milestones being met
- It demonstrates the market’s confidence in the performance and long-term potential of the Appian-managed projects, showcasing Appian’s ability to optimize the long-term value of its assets
- The transaction represents the 5th and 6th royalties sold by Appian, and the 15th and 16th successful exits delivered on behalf of its investors
Appian Capital Advisory Limited (“Appian”), the investment advisor to long-term value-focused private capital funds that invest in companies in metals, mining and adjacent industries, announces it has closed an agreement with Versamet Royalties Corporation (“Versamet”) to sell a 2.75% net smelter return royalty (“NSR”) on Atlantic Nickel’s Santa Rita polymetallic mine in Brazil (the “Royalty”) and a silver stream on Rosh Pinah Zinc’s mine in Namibia (the “Silver Stream”) for an up-front cash consideration of US$125 million and a contingent consideration of up to US$45 million. The transaction follows competitive sales processes that attracted interest from a broad range of market participants.
The 2.75% NSR royalty on Atlantic Nickel’s Santa Rita mine covers the open-pit and underground deposits, as well as the entirety of Atlantic Nickel’s current land holdings in the area, representing an area of over 40,000 hectares. As part of the agreement, Versamet will pay up to an additional US$45 million in cash consideration upon the following milestones being achieved at Santa Rita:
- US$22.5 million upon the processing of the first 1.0 million tonnes of underground ore at Santa Rita, provided that occurs prior to July 1, 2035; and
- US$22.5 million upon Santa Rita achieving a throughput rate of 12,500 tonnes per day from underground ore over a 90-day period, provided that occurs prior to July 1, 2035
Under the Silver Stream, Versamet is entitled to receive refined silver equal to 90% of the payable silver production from Rosh Pinah Zinc. After a total of 3,100,000 ounces of silver have been delivered, Versamet will be entitled to receive 45% of the payable silver for the remaining life of the mine. Versamet will pay 10% of the spot silver price for each ounce delivered.
Both assets, which are majority-owned by Appian, are currently advancing expansion projects aimed at realizing their long-term potential through optimizing and extending mine production.
Appian is advancing an underground transition at Atlantic Nickel’s Santa Rita mine. A prefeasibility study, delivered in 2024, reinforced confidence in the underground extension, projecting a mine life of more than 20 years, a higher production rate and a lower cost structure.
Rosh Pinah Zinc’s expansion project comprises further development of the underground mine, as well as the construction of new surface facilities, including a new processing plant, the addition of a paste fill and water treatment plant, and a newly developed portal and decline to extended underground deposits. The project will almost double the mine’s production output to 170 million lb/year of contained zinc metal. Construction of the surface facilities is now over 80% complete and remains on budget. Construction completion is expected in Q3 2026, with ramp-up commencing in quick succession.
Following the sale, Appian’s royalty portfolio continues to include several attractive long-life assets across a diverse set of commodities, including: a gold stream on Asante Gold Corporation’s operating Bibiani and Chirano mines in Ghana, a lithium royalty on Lithium Ionic’s Bandeira Project in Brazil, a polymetallic royalty on US Strategic Metals’ processing and recycling facility in the US, and a potash royalty on Western Resources Corp’s Milestone Project in Canada.
Michael W. Scherb, Founder and CEO of Appian, commented: “This transaction underscores the strength of Appian’s portfolio and our ability to unlock long-term value for our investors. The strong interest we received reflects the quality of the underlying assets at Atlantic Nickel and Rosh Pinah Zinc, as well as Appian’s disciplined approach to portfolio optimization. We’re pleased to partner with Versamet in a deal that realizes immediate value while retaining exposure to the future upside of these high-quality assets.”
Appian Capital Advisory Ltd
Andrew Todd, Head of Communications: +44 7990416759 / [email protected]
+44 (0)20 7004 0951 / [email protected]
About Appian Capital Advisory Ltd
Appian Capital Advisory Ltd is the investment advisor to long-term value-focused private capital funds that invest in companies in metals, mining, and adjacent industries.
Appian is a leading investment advisor with global experience across South America, North America, Australia and Africa and a successful track record of supporting companies in metals, mining, and adjacent industries to achieve their development targets, with a global operating portfolio overseeing approximately 5,000 employees.
Appian has a global team of 100 experienced investment professionals, combining financial and technical expertise, with presences in London, Abu Dhabi, New York, Dubai, Belo Horizonte, São Paulo, Beijing, Hong Kong, Toronto, Lima and Perth.
For more information, please visit www.appiancapitaladvisory.com, or find us on LinkedIn, Instagram or Twitter/X.
Versamet Royalties Corporation
Craig Rollins, General Counsel: +1 778-945-3948 / [email protected]
About Versamet Royalties Corporation
Versamet is an emerging precious metals royalty & streaming investment focused on creating long-term per share value for its shareholders through the acquisition of high-quality assets. Versamet common shares trade on the TSX Venture Exchange under the symbol “VMET”.
For more information about Versamet, including additional details on royalties and streams, please visit www.versamet.com.
