On December 15, 2022, Triple Flag Precious Metals Corp. (TSX: TFPM) declared the purchase of a 2.5% net smelter returns royalty on Clean Air Metals Inc.’s Thunder Bay North Project in Northern Ontario, Canada, for up to a total of C$15 million.
The total amount of C$15 million will be provided in two installments, with the initial C$10 million given on the effective date and the remaining C$5 million paid within 90 days of the commencement of the royalty agreement, pending the fulfillment of the conditions of Rio Tinto Exploration Canada Inc.’s approval. Clean Air Metals has been given the right by Triple Flag to reduce the NSR royalty to 1.5% within three years of the effective date of the royalty agreement for C$10.5 million, assuming both tranches are closed. Clean Air Metals has also authorized Triple Flag with a right of first refusal on any future streams, royalties, or similar funding for the Thunder Bay North Project and its related area.
After the Effective Date, Clean Air Metals will be given 90 days for due diligence and to decide on the sale of RTEC’s 1% NSR royalty for the Thunder Bay North Project for C$2 million, subject to certain conditions (“Put Option No. 1”). A payment of C$5 million will accompany this. RTEC also has the option to offer its 1% net smelter returns to Clean Air Metals for C$3.5 million at a later date (“Put Option No. 2”). This choice is valid from June 30, 2024, to 60 days after the National Instrument 43-101 – Standards of Disclosure for Mineral Projects filing on SEDAR. Benton Resources Inc. has approved the royalty agreement to be applied to the Current deposit claims (formerly the Thunder Bay North claims held by Panoramic Resources Inc.) and Escape deposit claims previously held by Benton Resources on option with an option with RTEC. Upon termination of Put Option No. 1 or when RTEC exercises Put Option No. 2, Clean Air Metals and Triple Flag will complete the second tranche, and the royalty agreement will come into effect for the Escape deposit claims and be registered with the associated titles of the Escape deposit claims.