EVBC, Spain / Gold
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The El Valle-Boinás/Carlés (‘EVBC’) project is located in the Rio Narcea Gold Belt in Northern Spain, near the port city of Avilés.
Producing
Gold
Orvana Minerals
Spain
Royalty rate and type
0.5–3% NSR
Balance sheet classification
Royalty financial instrument
The Group has a 2.5% life of mine NSR royalty on the EVBC gold, copper and silver mine owned by TSX-listed Orvana Minerals Corp (‘Orvana’). EVBC is located in the Rio Narcea Gold Belt of northern Spain and was previously mined from 1997 to 2006 by Rio Narcea Gold Mines. The royalty rate is 0.5% where the gold price is <$1,800/oz up to 3.0% where the gold price is <$2,500/oz.
EVBC is an underground mine and the main mining methods are overhand cut and fill and transverse and longitudinal longhole stoping. The cut and fill mining method is utilised in the oxides and some transitional areas of the Boinas mine. Longhole stoping is used in the more competent skarns.
During 2023, Ecora and Orovalle reached an agreement relating to the royalty over the EVBC mine, whereby Orovalle has agreed to pay the outstanding royalty amounts for Q3 2022 and Q4 2022 totalling $1.5m in full, before applying a new ratchet structure linked to the gold price from 1 January 2023, that will see the applicable royalty increase from a minimum 0.5% where the gold price is <$1,800/oz up to 3.0% where the gold price is <$2,500/oz1. The EVBC royalty contributed 0.7m in 2023 ($2.8m in 2022)