Canadian streaming and royalty company Triple Flag Precious Metals’ wholly owned subsidiary, Triple Flag International, has secured 5% silver and gold streams from both the Arcata and Azuca mines in Peru for $35m (C$50.26m).
The mines are operated by Sierra Sun Precious Metals, which has committed to using the funds from Triple Flag to bring Arcata back into production in the near term and to develop the Azuca mine.
Triple Flag will make ongoing payments at 10% of the spot price for each ounce delivered under the streams.
This strategic move is expected to deliver a steady flow of precious metals for at least the next decade.
The streams are expected to yield an annual increase in gold equivalent ounces (GEOs), reaching approximately 5,000–6,000 GEOs per year by 2028.
Sierra Sun’s obligations under the streams will be secured with a continuing interest in the company’s property, assets and undertakings, including a mortgage on the mines.
Triple Flag CEO Sheldon Vanderkooy said: “We are pleased to announce that we have acquired 5% silver and gold streams on the Arcata and Azuca mines in Peru from Sierra Sun, a well-established operator in the country.
“The Sierra Sun management team have extensive experience in Peru and have provided mining and engineering services to some of the top mining companies operating in the country. We believe that Arcata and Azuca are exciting precious metals restart and development opportunities, respectively, with excellent exploration upside, and we look forward to our partnership with Sierra Sun.”
Sierra Sun plans a phased restart of the Arcata underground mine to support a steady ramp-up, with production expected in the second half of 2025. Meanwhile, Azuca production is expected by late 2029.
The streams cover existing mining and exploration licences, with significant exploration potential indicated across both properties.
The Arcata underground silver and gold mine, previously operated by Hochschild Mining, has been under care and maintenance since February 2019 due to low silver prices.
With existing infrastructure including a 2,500 tonnes per day processing plant, the site is well-positioned for a swift return to production.
The Azuca mine, a satellite underground deposit located 116km north of Arcata, will see its ore trucked to Arcata for processing.
As of 31 December 2023, Arcata’s measured and indicated resources totalled 2.13 million tonnes (mt), while Azuca’s measured and indicated resources amounted to 7mt.
In December 2024, Lithium Royalty announced a definitive agreement to sell a 0.5% gross overriding revenue royalty over the Tres Quebradas lithium brine project in Catamarca, Argentina, to Triple Flag Precious Metals.
