Versamet Royalties Completes Acquisition of Cornerstone Canadian Gold Stream on Eskay Creek
Rhea-AI Summary
Versamet (NASDAQ: VMET) completed acquisition of a 3.52% gold stream on the Eskay Creek project for an upfront cash payment of $340 million and 2,054,906 common shares. Versamet funded the deal with an amended credit facility totaling $400 million from Bank of Montreal and National Bank of Canada.
The stream is uncapped, secured to the project, requires completion tests by September 30, 2027, and carries ongoing delivery payments equal to 10% of spot gold per ounce delivered.
AI-generated analysis. Not financial advice.
Positive
- Acquired a 3.52% uncapped gold stream on Eskay Creek
- Upfront consideration of $340 million plus 2,054,906 shares
- Financing secured via combined $400 million credit facilities
- Eskay expected >300,000 oz/year gold in first five years
- Gold Stream is secured against Eskay Creek assets
Negative
- Amended credit facility increases leverage with a $150 million term loan maturing March 2028
- Issuance of 2,054,906 shares causes shareholder dilution
- Stream requires completion tests by September 30, 2027, creating timing risk for full entitlement
- Versamet must pay 10% of spot gold on ounces delivered, exposing cash flow to price timing
News Market Reaction – VMET
On the day this news was published, VMET declined 3.55%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
No peer stocks were flagged in the momentum scanner, and sector-level movement signals were absent, pointing toward a company-specific reaction to this acquisition completion.
Previous Acquisition Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 06 | Gold stream acquisition | Positive | +6.8% | Announced 3.52% life‑of‑mine Eskay Creek gold stream for $360M. |
The prior Eskay Creek stream acquisition announcement in early April also coincided with a mid‑single‑digit percentage gain, suggesting investors have consistently viewed this asset positively.
Recent news for Versamet has centered on growth and portfolio expansion. On Apr 6, 2026, the company announced the agreement to acquire the 3.52% Eskay Creek gold stream for $360 million, which saw a 6.84% price gain. Earlier, Versamet reported record Q4 2025 revenue of $18.4M and full‑year revenue of $34.8M, alongside portfolio and financing expansion. Today’s completion of the Eskay stream transaction follows through on that April 6 agreement.
Historical Comparison
This acquisition completion follows an April 6 Eskay Creek stream announcement that moved the stock 6.84%. Today’s 6.98% gain is very similar in magnitude.
The company progressed from agreeing to acquire the 3.52% Eskay Creek gold stream on Apr 6, 2026 to funding and closing the transaction, including finalizing an amended and restated credit facility to support the purchase.
Market Pulse Summary
This announcement confirms closing of the Eskay Creek gold stream acquisition, giving Versamet a 3.52% life‑of‑mine interest funded via a $400 million amended credit facility. It follows the April 6 agreement that previously moved the stock and builds on record 2025 revenue of $34.8M. Key factors to watch include Eskay’s ability to meet completion tests by September 30, 2027, long‑term production relative to the 2.61 million‑ounce minimum, and balance sheet flexibility.
Key Terms
gold stream financial
revolving facility financial
term facility financial
accordion financial
life of the mine technical
AI-generated analysis. Not financial advice.
All amounts are in U.S. dollars unless otherwise indicated.
Vancouver, British Columbia--(Newsfile Corp. - April 10, 2026) - Versamet Royalties Corporation (NASDAQ: VMET) (TSX: VMET) ("Versamet" or the "Company") has completed the previously announced acquisition of a
Versamet paid an upfront cash payment of
Gold Stream Summary
- Gold Stream: Under the Gold Stream, Versamet is entitled to receive
3.52% of the payable gold production for the life of the mine, provided that the mine successfully achieves certain completion tests on or before September 30, 2027. The Gold Stream is uncapped and has no step-downs or buydown provisions and includes an area of interest. - Production Profile: Eskay is expected to produce an average of over 300,000 ounces of gold per year in its first 5 years and an average of approximately 230,000 ounces of gold per year over its initial 12 year life.1
- Delivery Payments: For gold ounces delivered to the Gold Stream, Versamet will make ongoing cash payments equal to
10% of the spot gold price at the time of delivery. - Other Terms:
- Gold Stream Percentage: If the completion tests are not satisfied by September 30, 2027, the stream percentage shall increase to
3.57% ,3.62% and3.67% if completion is achieved in the first, second or third calendar quarters following September 30, 2027, respectively, and a further additional0.13% per quarter for the remaining calendar quarters until satisfaction of the completion tests. - Minimum Delivery Provision: If a cumulative total of 2.61 million ounces of payable gold applicable to the Gold Stream has not been produced by April 1, 2040, Versamet is entitled to a one-time delivery of gold equal to the difference between cumulative gold ounces delivered to the Gold Stream at the time and 2.61 million ounces multiplied by the Gold Stream percentage at the time.
- Security: The Gold Stream is secured over the Eskay Creek project assets.
- Gold Stream Percentage: If the completion tests are not satisfied by September 30, 2027, the stream percentage shall increase to
Full details of the transaction can be found in Versamet's news release titled "Versamet Acquires Cornerstone Canadian Gold Stream on Eskay Creek" dated April 6, 2026.
About Versamet Royalties Corporation
Versamet is an emerging mid-tier precious metals royalty & streaming company focused on creating long-term per share value for its shareholders through the acquisition of high-quality assets. Versamet's common shares trade on the NASDAQ and Toronto Stock Exchange under the symbol "VMET".
For more information about Versamet, including additional details on our royalties and streams, please visit our website at versamet.com.
General inquiries:
Craig Rollins, General Counsel
Email: info@versamet.com
Telephone: 778-945-3948
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Diego Airo, P.Eng, Executive Vice President, Project Evaluation for Versamet and a member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia. Mr. Airo is a Qualified Person as defined in the National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this press release includes, but is not limited to, statements relating to: the anticipated benefits of the Acquisition to the Company; the expected contribution of the Gold Stream to the Company's attributable GEO production; Eskay Creek's expected construction progress and the timing of first production; the Company's expectations with respect to future attributable GEOs and cash flows; the expected commencement of deliveries under the Gold Stream; expectations regarding the Company's capital structure following completion of the Transaction; and the Company's future growth and acquisition strategy; and other statements regarding future plans, expectations, exploration potential, guidance, projections, objectives, estimates and forecasts (in general and in connection with respective asset updates), as well as our expectations with respect to such matters. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Versamet to control or predict, that may cause Versamet's actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to, the risk factors set out under the heading "Risk Factors" in the Company's Annual Information Form dated March 31, 2026 available for review on the Company's profile at www.sedarplus.ca, as well as the Company's Form 20-F filed with the Securities and Exchange Commission on March 4, 2026, available for review on the Company's profile at www.sec.gov/edgar. Such forward-looking information represents management's best judgment based on information currently available. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
Non-IFRS Measures
We have included, in this document, certain performance measures, including GEOs which is a non-IFRS measure. The presentation of such non-IFRS measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. This non-IFRS measure do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently.
Technical and Third-Party Information
Except where otherwise stated, the disclosure in this news release relating to Eskay Creek is based on information publicly disclosed by the owners or operators of this property and information/data available in the public domain as at the date hereof and none of this information has been independently verified by Versamet. Specifically, as a royalty/stream holder, Versamet has limited, if any, access to the property subject to the royalties/streams. Although Versamet does not have any knowledge that such information may not be accurate, there can be no assurance that such third-party information is complete or accurate. Some information publicly reported by the owner or operator may relate to a larger property than the area covered by Versamet's interests.
"Inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Historical results or feasibility models presented herein are not guarantees or expectations of future performance.
Endnotes
- Sources: Skeena news releases dated November 14, 2023, titled "Skeena Completes Positive Definitive Feasibility Study for Eskay Creek: After-Tax NPV (
5% ) of C$2.0 Billion ,43% IRR and 1.2 Year Payback" and March 31, 2026, titled "Skeena Gold & Silver Confirms Eskay Creek Reaches49% Completion & Provides Project Update; Initial Production Remains on Schedule for Q2 2027". Skeena Gold & Silver corporate presentation dated April 2026, titled "Developing the Next Tier 1 Gold & Silver Mine". Technical Report titled "NI 43-101 Technical Report on Updated Feasibility Study" with effective date November 14, 2023, prepared by Sedgman Canada Limited. Gold equivalent calculated using$1,800 /oz gold price and$23 /oz silver price. All available on Skeena Gold & Silver's website at skeenagoldsilver.com.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/292014