Glencore today announces the completion of the sale of a royalty package by BaseCore Metals LP (“BaseCore”) to Sandstorm Gold Ltd. (“Sandstorm”) for total consideration of US$525 million. BaseCore is owned 50:50 by Glencore and Ontario Teachers’ Pension Plan Board (“OTPP”).
Total transaction consideration was comprised of US$425 million in cash and US$100 million in common shares of Sandstorm as of the announcement date, representing an ownership interest in Sandstorm of 5%.
BaseCore was created in 2017 as a joint venture limited partnership focused on base metals streams and royalties. Glencore contributed a portfolio of selected royalties, which were valued at US$300 million at the inception of the partnership with OTPP.
Glencore expects to receive approximately $300 million in cash and Sandstorm shares for its 50% interest in BaseCore, including retained cash on balance sheet that will be distributed to Glencore after which the intention is to collapse the business.
BaseCore and its limited partners were advised by RBC Capital Markets as financial advisers and Fasken Martineau LLP as legal advisers.
