- Royal Gold has entered into a $175 million gold stream transaction with a company called Euromax Resources.
- The gold stream will finance a huge portion of construction on the Illovitza gold-copper project in Macedonia.
- Royal Gold will receive 25% of gold produced until 525,000 ounces have been produced, and 12.5% thereafter at 25% of the spot price.
- This looks like a decent deal upfront, but Euromax still has to finance a large portion of construction at the mine, even with the $175 million.
- Still, I like this deal for a number of reasons and think it could pay off big in time.