06:44 AM EDT, 08/05/2025 (MT Newswires) -- First Quantum Minerals ( FQVLF ) on Tuesday said it signed a gold streaming agreement with Royal Gold subsidiary RGLD Gold in which First Quantum will receive a US$1 billion upfront cash payment in exchange for gold deliveries commensurate with copper production at the Kansanshi mine in Zambia.

First Quantum will deliver 75 ounces of gold per million pounds of recovered copper produced until 425,000 ounces of gold are delivered, 55 ounces of gold per million pounds of recovered copper produced until an additional 225,000 ounces of gold are delivered, and 45 ounces of gold per million pounds of recovered copper produced thereafter.

The deal allows First Quantum to maintain full exposure to the copper production at Kansanshi. On average, 84% of the company's total gold production will continue to have exposure to spot gold prices.

First Quantum will receive ongoing production payments from Royal Gold equivalent to 20% of the prevailing spot gold price for each ounce of gold delivered. This will increase to 35% when First Quantum achieves a BB senior unsecured debt rating from Fitch Ratings or S&P Global Ratings or a net leverage ratio of less than or equal to 2.25x over three consecutive quarters starting with the quarter ended March 31, 2026, whichever comes earlier.

First Quantum has options to accelerate deliveries and reduce ongoing gold delivered to Royal Gold by up to 30%.

Proceeds will be used to pay for capital expenditure, general working capital requirements and bank loan repayment.

Separately, Sandstorm Gold ( SAND ) on Tuesday said it supports Royal Gold's acquisition of the gold. Royal Gold in July agreed to acquire of Sandstorm's issued and outstanding common shares in an all-share transaction.

Royal Gold will fund the gold acquisition with available cash and its revolving credit facility and won't issue new shares.

"Our acquisition agreement with Royal Gold specifically contemplated the potential for a large stream acquisition before closing the Royal Gold/Sandstorm transaction, and we are pleased with today's announcement," said Sandstorm President and CEO Nolan Watson. "Being part of a larger and well-capitalized entity creates the opportunity for Sandstorm shareholders to benefit from exposure to larger acquisitions.