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Royal Bafokeng Platinum secures US$145M in gold streaming agreement

Royal Bafokeng Platinum Ltd. subsidiary Royal Bafokeng Resources Pty. Ltd. will receive US$145 million as part of a streaming agreement covering gold production from its mines, excluding Styldrift II and the Impala royalty areas.

The company will deliver 70% of its payable gold output to Triple Flag Mining Finance Bermuda Ltd. up to 261,000 ounces and deliver 42% of its gold production thereafter.

Triple Flag Mining will also pay 5% of the spot gold price to the miner, on top of the US$145 million cash payment upfront, according to an Oct. 16 news release.

Royal Bafokeng Platinum said it aims to take advantage of an increased South African rand gold price, which is at a high compared to the previous decade, while noting that gold production represents about 3% of its revenue.

CEO Steve Phiri said the deal will enable the company to strengthen its balance sheet and free-up cash to fulfill its obligations to Rustenburg Platinum Mines Ltd. in relation to the 2018 acquisition of an interest in the Bafokeng-Rasimone platinum group metals mine in South Africa.