Allens advises Triple Flag on $550M Northparkes streaming

Allens has advised Triple Flag Precious Metals on its metal streaming agreement with China Molybdenum to receive gold and silver by reference to the Northparkes mine in NSW.

The agreement will see Triple Flag make an upfront cash payment of US$550 million and ongoing payments of 10 per cent of the spot prices for gold and silver equal to: 54 per cent of the gold produced at Northparkes until a cumulative amount of 630,000 oz is delivered, and 27 per cent of the gold once that threshold is met; and 80 per cent of the silver produced at Northparkes until a cumulative amount of 9 Moz is delivered, and 40 per cent of the silver after that amount is delivered.

‘While increasingly popular overseas over the past decade, metal stream financing is relatively rare in Australia,’ said Partner Jodi Reinmuth.

‘Triple Flag’s proven track record with streaming transactions was instrumental in its success in the competitive bid process for the Northparkes financing.

Partner Ben Farnsworth said: ‘We are delighted to have advised Triple Flag on this innovative financing for a high quality asset, which builds on Allens’ extensive experience in the mining sector.’

Allens also advised on the sale of Rio Tinto’s interests in the Northparkes copper-gold mine to China Molybdenum in 2013.

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