The royalty has been held by 2017 by private equity firm Taurus Funds Management, which project financed the mine under former owner Toro Gold. Resolute acquired Toro and its flagship Mako mine in July 2019 for US$274 million.

The terms of the royalty allowed its holder, Taurus, to demand a termination sum should Toro Gold come under new management. The figure of US$12 million was calculated by multiplying future gold production with the spot price and royalty rate.

Resolute said it expects to repay the finance facilities provided by Taurus in the March quarter, while the US$130 million bridge facility provided by Taurus for the Toro acquisition will be repaid by the end of January. Resolute deferred paying the royalty termination sum until the bridge facility was repaid.

The company said the agreed terms for the removal of the royalty "will greatly simplify the refinancing process".

"Acquisition of the Toro Gold Royalty will boost the future cash flows received by Resolute from Mako and further enhances our exposure to higher gold prices and future exploration success. We are working to simplify the Company's capital and debt structure and the termination of this external royalty on sound financial terms is value accretive for Resolute," said Resolute's managing director and CEO John Welborn.