OR Royalties Announces Acquisition of a Portfolio of Royalty Assets Including a 1.5% NSR Royalty on Buenaventura’s Producing San Gabriel Mine

Core Viewpoint - OR Royalties Inc. has entered into a definitive agreement to acquire a portfolio of precious metals assets from Gold Fields Limited for a total consideration of $115 million, which includes a 1.5% net smelter return royalty on the San Gabriel gold and silver mine in Peru, expected to enhance the company's gold equivalent ounce deliveries and cash flow [1][3][8]. Transaction Highlights - The acquisition includes eight royalties, with immediate contributions to expected gold equivalent ounces (GEOs) and cash flow from the San Gabriel mine, which began production in December 2025 [3][8]. - The transaction is projected to increase OR Royalties' GEO delivery range to 80,000 - 90,000 in 2026 and 120,000 - 135,000 by 2030, representing approximately 50% growth without requiring contingent capital [3][4]. - The portfolio also includes royalties on development and exploration projects in Tier-1 mining jurisdictions, maintaining a focus on precious metals [3][4]. Acquired Assets - The San Gabriel mine has Proven and Probable Mineral Reserves of 15.3 million tonnes at average grades of 3.71 g/t gold and 6.32 g/t silver, supporting a mine life of 14.6 years [3][4]. - Buenaventura's production guidance for San Gabriel includes 48-55 thousand ounces of gold in 2026, increasing to 95-110 thousand ounces from 2028 onwards [3][4]. - The portfolio features a 2.0% NSR royalty on Torque Metals' Paris project in Australia and a 2.5% NPI royalty on Freeport and Amarc's JOY district exploration project in British Columbia, enhancing exposure to promising development assets [3][4][7]. Additional Considerations - OR Royalties will pay Gold Fields an additional $52 million for deferred payment obligations totaling $60 million related to Galiano's Nkran project, with specific payment milestones tied to gold production [5][6][8]. - The acquisition strengthens OR Royalties' position in the JOY district, complementing existing royalty assets and providing rights to future opportunities in high-grade discoveries [3][4][8].