Royalty and streaming company Triple Flag Precious Metals said on Wednesday that it had acquired 5% gold and silver streams on the Arcata and Azuca mines in Peru from Sierra Sun Precious Metals for $35-million in cash.

The transaction grants the company the right to purchase 5% of payable gold and silver from both operations for the life of the mines, with no step-down provisions. Sierra Sun will receive an upfront deposit of $35-million, which will be fully allocated to restarting operations at Arcata and advancing development at Azuca.

Arcata, an underground silver and gold mine originally developed by Hochschild Mining, has been on care and maintenance since early 2019 owing to depressed silver prices. With existing infrastructure including a 2 500 t/d processing plant and a power line, the mine is poised for a phased restart. Sierra Sun plans to restart operations in the second half of 2025, targeting steady-state production ramp-up thereafter.

The Azuca deposit, located 116 km north of Arcata, is expected to begin production by the end of 2029, with ore trucked to Arcata for processing. The streams are anticipated to generate between 5 000 and 6 000 gold-equivalent ounces per year by 2028.

The agreement also secures Triple Flag’s interest in any future commercially viable mineral discoveries at the properties. Arcata spans a 34 827-ha land package with a high-density vein district, while Azuca covers 13 492 ha.

Sierra Sun’s obligations under the streaming agreement are secured by a mortgage over the mines, providing Triple Flag with further assurance. The two companies will also collaborate on social investment programmes in local communities surrounding the projects.

Lima-based Sierra Sun currently operates the Antapite and Sumaq Rumi mines in Peru. The company previously acquired Antapite from Buenaventura and successfully ramped up production, increasing processing capacity from 400 t/d to 1 000 t/d.

Sierra Sun’s leadership team, which has experience providing engineering and mining services to major industry players such as Newmont and Glencore, is now focused on delivering the next phase of development at Arcata and Azuca.