06:41 AM EDT, 08/15/2024 (MT Newswires) -- Allied Gold ( AAUCF ) late on Wednesday said it has closed a streaming transaction with Triple Flag International, a subsidiary of Triple Flag Precious Metals ( TFPM ) , receiving an initial upfront cash payment of US$53 million.

Under the deal terms, Allied Gold ( AAUCF ) will also receive ongoing payments equal to 10% of the spot gold price for a portion of its production.

Triple Flag will have the right to purchase 3% of the payable gold related to production at each of the Agbaou and Bonikro mines, subject to a step-down to 2% after set delivery thresholds.

The Agbaou and Bonikro mines make up the Cote d'Ivoire Complex (CDI Complex) and is a central element of Allied's growth strategy.

Allied said it continues to advance its stream and gold prepay financing for its Kurmuk project in Ethiopia and to evaluate how to deploy cash flows otherwise previously allocated to Kurmuk and the CDI Complex toward the advancement of its expansion plans at Sadiola mine in Mali.