Appian Capital Advisory has sold part of its future silver production from Namibia’s Rosh Pinah Zinc mine in a deal worth N$2.94 billion (US$170 million) with Versamet Royalties Corporation.
The agreement means Versamet will buy 90% of the silver produced at Rosh Pinah until 3.1 million ounces have been delivered.
After that, it will continue to receive 45% of the mine’s silver for as long as the mine operates, paying only 10% of the market price at the time of delivery.
The package also includes a 2.75% royalty on sales from Appian’s Atlantic Nickel mine in Brazil. Appian will receive N$2.16 billion (US$125 million) in cash upfront, with a further N$779 million (US$45 million) to be paid if Atlantic Nickel reaches certain production targets before 2035.
Appian Founder and CEO Michael W. Scherb said the deal confirmed confidence in the company’s assets.
“The strong interest we received reflects the quality of the underlying assets at Atlantic Nickel and Rosh Pinah Zinc, as well as Appian’s disciplined approach to portfolio optimisation,” he said.
For Appian, the transaction provides immediate cash while still allowing it to benefit from future output at the two mines, both of which are being expanded to increase production and extend their operating lives.
