Cassels representing Tether in $207M deal
Royal Gold, Inc. is offloading its majority stake in Versamet Royalties Corporation, selling approximately 23.7 million shares to investment firms Tether Investments and Nemesia for a combined $206.9 million. The move marks a significant step in the company's debt management strategy following its major acquisitions earlier this year.
The Vancouver-based precious metals royalty company will be split between the two buyers, each acquiring roughly 11.8 million shares at $8.75 per share. The transaction will reduce Royal Gold's ownership stake in Versamet from approximately 25 percent to zero, with Tether acquiring a 12.7 percent position.
Royal Gold accumulated the Versamet shares through its acquisition of Sandstorm Gold Ltd. on October 20, 2025, which it subsequently merged with its subsidiary International Royalty Corporation. The purchase represented one of the largest deals in the precious metals royalty sector in recent years, bringing Royal Gold significant exposure to the mid-tier royalty and streaming business.
However, Royal Gold's leadership quickly identified the Versamet stake as nonessential to the company's long-term strategy. Rather than holding the shares as a core investment, the company determined it could generate better returns by liquidating the position and using proceeds to reduce debt incurred during the acquisition spree.
“The disposition of the Versamet shares is in line with our stated objective of simplifying the Sandstorm portfolio,” Royal Gold CEO and president Bill Heissenbuttel said in a press release. “We will apply the proceeds to debt repayment, which is consistent with our focus on repaying the borrowings we incurred to complete the recent Sandstorm and Kansanshi acquisitions. The Versamet shares were identified as non-core and not material in our valuation of the Sandstorm transaction, and we are pleased to demonstrate progress on realizing value from non-core assets quickly after closing these transactions.”
The timing reflects broader market dynamics in the mining finance sector. Precious metals royalty companies, which receive payments based on production or revenue from mining operations, have become increasingly attractive to institutional investors seeking exposure to commodities without direct operational risk. Versamet, as an emerging mid-tier player in this space, represents the kind of smaller asset that larger companies often divest when restructuring their portfolios.
Tether Investments, which specializes in financial technology infrastructure and digital asset investments, appears to be diversifying beyond its traditional focus areas by acquiring exposure to traditional commodity-backed assets. The investment suggests growing crossover interest between the fintech and traditional resource sectors.
Cassels acted as legal counsel to Tether in the transaction, with the deal team including partners Jeff Durno and David Gardos, and associate Jacob Cawker.
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