Vancouver-based Versamet Royalties Corporation has struck a major agreement with Appian Capital Advisory to acquire a 90% silver stream on Rosh Pinah Zinc’s mine in Namibia, alongside a royalty interest in Brazil, for upfront cash consideration of US$125 million (N$2.1 billion) and contingent payments of up to US$45 million (N$765 million).
A silver stream is a financing arrangement in which Versamet provides cash upfront in exchange for the right to purchase a percentage of the mine’s future silver production at a discounted price.
In this case, Versamet will receive 90% of the payable silver from Rosh Pinah, paying only 10% of the market price per ounce, which ensures a steady cash flow while providing the mine with access to development capital.
Rosh Pinah Silver Stream
Under the agreement, Versamet will be entitled to receive refined silver equal to 90% of payable silver from Rosh Pinah Zinc.
Once 3.1 million ounces have been delivered, the company’s entitlement shifts to 45% of payable silver for the remaining life of the mine. For each ounce, Versamet will pay 10% of the prevailing silver price.
For the initial period, the silver entitlement is linked to zinc production: 4,000 ounces of payable silver per million pounds of recovered zinc until 250,000 ounces are delivered, after which it is 2,850 ounces per million pounds.
This structure remains until the earlier of 1.35 million ounces delivered or the end of 2028, after which actual payable silver output applies for the life of mine.
Expansion at Rosh Pinah
Appian is currently advancing the RP2.0 expansion, which aims to double throughput to nearly 1.3 million tonnes annually.
The project includes new processing facilities, a paste fill plant, a water treatment plant, and new underground access. Construction is more than 80% complete and scheduled for commissioning in the second half of 2026.
A technical report published in 2021 disclosed proven and probable reserves of 12.35 million tonnes grading 6.41% zinc, 1.36% lead and 19.8 grams per tonne silver, supporting long-term production at the mine. In 2024, Rosh Pinah processed 650,000 tonnes of ore, producing 87 million pounds of zinc, 14 million pounds of lead and 244,000 ounces of silver in concentrates.
Strategic Rationale
For Versamet, the deal significantly expands its exposure to precious metals. By 2026, the company forecasts annual production of more than 20,000 gold equivalent ounces, with approximately two-thirds from gold and a growing share from silver, much of which is sourced from Namibia.
Chief executive Dan O’Flaherty said the acquisition of uncapped, long-life silver production from Rosh Pinah “meaningfully enhances Versamet’s cash flow engine and growth trajectory” and underpins its plans to graduate to the TSX mainboard and pursue a US listing.
