07:46 AM EDT, 04/29/2024 (MT Newswires) -- GoldMining Inc. ( GLDG ) said on Monday that it completed a transaction with Compania de Minas Buenaventura to reduce an existing third-party royalty on the Crucero gold project in Peru.

GoldMining ( GLDG ) said it paid US$70,000 to Buenaventura to reduce the royalty to a 3% net smelter royalty (NSR). The royalty, granted by a previous operator that acquired the project in 2008, had been based on a sliding scale that reached a maximum 5% NSR for gold prices above US$800 per ounce.

GoldMining ( GLDG ) said it can further reduce the royalty to a 1% NSR by making an additional payment of US$200,000 at any time over the next 10 years.

"With this transaction, we have significantly reduced an overly burdensome royalty and enhanced the potential value of the Crucero property," GoldMining ( GLDG ) Chief Executive Alastair Still said. "This helps position us to continue advancing our disciplined strategy of unlocking value from our diversified portfolio of resource-stage gold and gold-copper projects in the Americas."

GoldMining's ( GLDG ) shares rose 1.8% on Friday to $1.15.