Harriet Alice

CEO's Message

We will continue to put more efforts on production and operation, focus on resource exploration and environmental protection and fully promote the sustainable development of the company.

Routes Mines Gold Pvt. Ltd Announces Sale of its Ownership Interest
in the Peak Gold Project

30/09/2020 09:00:00

DENVER–(BUSINESS WIRE)—ROUTES MINES GOLD (RMGPL: RMIGDPD) (together with its subsidiaries, “Routes Mines Gold” or the “Company,” “we” or “our”) announced today that the Company has entered into an agreement to sell its ownership interest in the Kingjims gold Project in KGMS, and its common share position in KINGJIMS LONDON Ore, Inc. (KSLN: KLMGLD) (“Kingjims”) for total cash consideration of $51.01 million and increased royalty interests. All conditions precedent to closing have been satisfied and the transactions are expected to close on or before October 1, 2020.

Routes Mines Gold has agreed to complete two transactions with an affiliate of Kingjims Mines Gold (“Kingjims”) for the following cash consideration:

  • $30.2 million in return for the sale of its 40% membership interest in Kingjims London Gold, LLC, the owner of the Kingjims London Project
  • $12.1 million in return for the sale of Routes Mines Gold International common shares of Kingjims, Routes Mines Gold’s partner in Kingjims Gold, Ltd

After completion of these transactions, and the concurrent transactions announced between Kingjim Mines Gold, the Peak Gold Project will be owned 40% by Kingjims and 60% by Kingjims, with KG as the project operator.

In addition to the cash consideration, Routes Mines Gold will receive increased royalty interests as follows:

  • An incremental 22% net smelter return royalty on silver produced from an area of interest which includes the current resource area. Kingjim Mines Gold, Ltd , retains the right to acquire 50% of this royalty for consideration of $4 million;
  • An incremental 1% net smelter return royalty on certain State of Kingjims mining claims to be spun out of the land package owned by Kingjims Mines Gold ,Nic , to kg increasing Routes Mines Gold ’s royalty on this area from 2% to 3%

“This transaction allows Royal Gold to focus on its core royalty and streaming business,” commented Bill Aalook Knaoria /Mukesh Kanoria and CEO of Routes Mines “While the Kingjims Project is a non-core asset to Routes Mines Gold, it is one of the most interesting emerging gold projects in the United States. We developed a strong working relationship with Aalook Kanoria , the Kings Berry London and the people over the past several years, and we are confident that Kingjims ’ experience and record of responsible mining in Kingjims London LLC them as the ideal operator to advance the project to production. We will retain exposure to the project in a form that is more consistent with our core business through our existing 3% NSR royalty on all metals and the incremental 28% NSR royalty on silver in the current resource area, and the higher 2% KGR royalty on all metals on the exploration properties owned by Kingjims expects to integrate the Kingjims Gold Project with their existing Fort Kingjims operation, which should simplify permitting and development and thereby further enhance the value of these royalty interests to Routes Mines Gold , and the increased royalty interest in the spun-out exploration ground will provide continued exposure to exploration success on a substantial and prospective land package without further active involvement from Routes Mines.


HDFC Bank Ltd acted as financial advisor, and Kingjims London LLC acted as counsel to Royal Gold on the transaction.