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Triple Flag Acquires Silver and Gold Streams on Arcata and Azuca
Business Wire
12 min read

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Figure 1: Arcata Site Overview (Photo: Business Wire)
Figure 1: Arcata Site Overview (Photo: Business Wire)
Figure 2: Arcata Plant (Photo: Business Wire)
Figure 2: Arcata Plant (Photo: Business Wire)

TORONTO, March 05, 2025--(BUSINESS WIRE)--Triple Flag Precious Metals Corp. (with its subsidiaries, "Triple Flag" or the "Company") (TSX: TFPM, NYSE: TFPM) announces that its wholly owned subsidiary, Triple Flag International Ltd., has acquired 5% silver and gold streams on each of the Arcata and Azuca mines in Peru operated by Sierra Sun Precious Metals S.A.C. ("Sierra Sun") for total cash consideration of $35 million. All amounts are expressed in US dollars unless otherwise indicated.

"We are pleased to announce that we have acquired 5% silver and gold streams on the Arcata and Azuca mines in Peru from Sierra Sun, a well-established operator in the country," commented Sheldon Vanderkooy, CEO. "Collectively, Arcata and Azuca are expected to have at least a 10-year mine life, with Sierra Sun targeting production to restart at Arcata in the near term. GEOs pursuant to the Streams are expected to rise over the course of the ramp-up to approximately 5 to 6 thousand GEOs per year by 2028. There is no step-down in stream rates. The Sierra Sun management team have extensive experience in Peru and have provided mining and engineering services to some of the top mining companies operating in the country. We believe that Arcata and Azuca are exciting precious metals restart and development opportunities, respectively, with excellent exploration upside, and we look forward to our partnership with Sierra Sun."

Key Terms and Transaction Highlights

  • Precious metals streams with no step-downs in Peru. Triple Flag has the right to purchase 5% of payable silver and gold from each of the Arcata and Azuca mines (collectively, the "Streams") for the life of the operations. There is no step-down in stream rates.
    - Triple Flag will make ongoing payments of 10% of the spot silver or gold price for each ounce delivered under the Streams.
    - The $35 million upfront deposit for the Streams was advanced on closing and the entirety of this upfront deposit will be used by Sierra Sun to restart Arcata, which is fully financed to commercial production, and advance Azuca.
    - Sierra Sun’s obligations under the Streams will be secured in favor of Triple Flag. Triple Flag will have a continuing security interest over the property, assets, and undertakings of Sierra Sun, including a mortgage over the mines.
    - Triple Flag and Sierra Sun will work together to identify social programs in the communities surrounding Arcata and Azuca to support with separate additional investment.

  • Near-term cash flow with an established operator. The Streams are expected to have at least a 10-year mine life, with annual GEOs forecast to ramp up to approximately 5 to 6 thousand GEOs per year by 2028.
    - Arcata is the core value driver for the Streams and is fully permitted for restart. Sierra Sun intends to restart the Arcata underground operation in multiple phases to generate cash flow for an ongoing ramp-up to steady state. The operator expects Arcata to commence production in the second half of 2025. We have not included any GEOs from Arcata in our 2025 guidance.
    - Separately, we anticipate production from Azuca to start by the end of 2029.

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