Mining Markets

News

Premier Gold offers new royalty investing option

With a listing that is synonymous with royalties, Premier Royalty (NSR-T) started trading on the Toronto Stock Exchange today, giving investors a new mining royalty company to choose from.


With a listing that is synonymous with royalties, Premier Royalty (NSR-T) started trading on the Toronto Stock Exchange today, giving investors a new mining royalty company to choose from.

And with the success of royalty and streaming companies Franco-Nevada (FNV-T, FNV-N), Royal Gold (RGL-T, RGLD-Q), Silver Wheaton (SLW-T, SLW-N) and Sandstorm Gold (SSL-T, SAND-X), Premier appears to have perfect timing to satisfy investors’ thirst for yield and cash flow in an era of increasing costs and scant available capital for miners.

Premier Gold (PG-T) formed its Premier Royalty subsidiary in November 2011 and brought on Abraham Drost, a former president of both Sabina Gold & Silver (SBB-T) and Sandspring Resources (SSP-V), to manage it.

As a means of listing its royalty holdings, Ewan Downie-led Premier Gold made a deal to merge Premier Royalty with Venture-listed Bridgeport Ventures, then assumed control of the company. (Bridgeport has the right to name two directors to the board.)

As part of the merger, Bridgeport consolidated its shares on a four-for-one basis, then issued new shares (equal to 60% of its outstanding shares) to Premier Gold.

Premier Royalty now has 62.9 million shares outstanding.

With the transition, which took place today, the stock skyrocketed by 315% or $1.80 to $2.37.

The company has a 1.5% net smelter royalty (NSR) on Newmont Mining’s (NMC-T, NEM-N) Emigrant Springs mine in Nevada; a 1% NSR on Lake Shore Gold’s (LSG-T) Thunder Creek deposit at its Timmins West mine in Ontario; a 1% NSR on the Buffelsfonstein mine in South Africa; a 1% NSR on AngloGold Ashanti’s (AU-N) Mine Waste Solutions tailings operation in South Africa; and a 1% NSR on Yamana Gold’s (YRI-T, AUY-N) Gualcamayo mine in Argentina.