Investing.com -- Ecora Resources (LON:ECOR) stock jumped 3.7% after the company announced the sale of its Dugbe gold royalty for $20 million, a transaction significantly above the asset’s carrying value. The deal includes a $16.5 million upfront cash payment and contingent consideration of up to $3.5 million, payable upon commencement of project construction followed by commercial production. The contingent amount would be paid in full if the project is built to a smaller scale than outlined in the 2022 feasibility study, upon reaching cumulative production of 150,000 ounces of gold. Ecora acquired the Dugbe royalty in 2012, which had a carrying value of $5.9 million as of December 2024. The royalty represented approximately 4% of the company’s net asset value (NAV) and is currently in the development stage. "We were the top of consensus valuing the royalty at $23m (4% of NAV), albeit the stock is trading at 0.56x NAV with the market not ascribing value to its non-producing royalty pipeline," according to RBC analysts. The transaction is expected to close in the coming days, with Ecora planning to use the proceeds to reduce its debt. The sale appears to be a strategic move to monetize a development-stage asset at a premium to its book value while strengthening the company’s balance sheet. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Get an up-to-the-minute summary from WarrenAI, our powerful AI financial researcher. It's just like ChatGPT for investors, but with access to 1,200+ premium metrics spanning 10 years of data to instantly screen fundamentals, summarize breaking news, and reveal what Wall Street analysts are really saying about ECORE. Ask questions in your own language and get insider answers in seconds. Think of it as your experienced investment partner—always ready to help you think through every angle of ECORE.