Kirkland Lake takes issue with Fosterville royalty deal

KIRKLAND Lake Gold has announced that it had initiated arbitration against AuRico Metals over a royalty deal covering the Fosterville gold mine in Victoria.

Kirkland Lake takes issue with Fosterville royalty deal Kirkland Lake takes issue with Fosterville royalty deal Kirkland Lake takes issue with Fosterville royalty deal Kirkland Lake takes issue with Fosterville royalty deal Kirkland Lake takes issue with Fosterville royalty deal

The Fosterville mine in Victoria

Toronto-listed gold producer Centerra Gold completed the C$310 million takeover of AuRico Metals in January and last month announced the US$155 million sale of AuRico's royalty portfolio to Triple Flag Mining Finance Bermuda, a deal that was completed overnight.

The centrepieces of that royalty portfolio are a 2% net smelter return royalty on Fosterville, and a 1.5% NSR royalty on Alamos Gold's Young-Davidson gold mine in Ontario.

Kirkland Lake said the notice of arbitration was delivered in accordance with the terms of the royalty agreement to enforce certain rights, including the right of first refusal in the event of a sale of the Fosterville royalty.

The company said it had sent notice to Centerra when it announced the royalty sale, informing it that any s...