Operator: TriStar Gold Inc.
Location: Pará State, Brazil
Royalty: 1.5% NSR (all metals)
Term of Royalty: Life of Mine
Castelo de Sonhos (“CDS”) is a gold development project owned by TriStar Mineração do Brasil Ltda, a wholly owned subsidiary of TriStar Gold Inc. (“TriStar”). CDS is located in Pará State Brazil, approximately 20 kilometers from the town of Castelo de Sonhos.
TriStar completed a Preliminary Economic Assessment for CDS in September 2018 and a Pre-Feasibility Study (PFS) in October 2021. CDS is envisioned as a conventional open-pit operation. In August 2024, TriStar announced the receipt of the preliminary license (LP) permit. The LP permit represents the first of a three-stage environmental licensing process required for mining projects in Brazil. Next steps for CDS involve further de-risking studies including feasibility and advancing engineering, leading to an ultimate construction decision.
Royal Gold holds a 1.5% net smelter return (NSR) royalty on all metals produced from CDS. Royal Gold also holds an option to purchase an additional 1.0% NSR royalty on production from CDS for a further investment of $5.0 million to $8.0 million to be determined by reference to mineralized material at CDS when the option is exercised.
Royal Gold acquired the 1.5% NSR royalty from TriStar on August 2, 2019, and the option for the additional 1.0% NSR royalty on May 28, 2019.