Elemental Altus Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) ("Elemental Altus" or the "Company") is pleased to announce that it has entered into a binding agreement (the "Agreement") to acquire an additional 50% ownership of 24 existing royalties (the "Portfolio") from AlphaStream Limited ("AlphaStream") for a consideration of US$28 million in equity (the "Acquisition"). The Portfolio includes Elemental Altus' existing producing gold royalties on the Bonikro Gold Project ("Bonikro"), the Ballarat Mine ("Ballarat"), South Kalgoorlie Operations ("SKO") and 21 additional royalties located in Australia. Upon completion of the Acquisition, Elemental Altus, through a 100% interest in the Portfolio, will hold an effective 4.5% NSR royalty on Bonikro, a 2.5% NSR royalty on Ballarat, and a A$10/oz royalty and A$1 million Discovery Bonus on SKO.
Acquisition Highlights:
Elemental Altus Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) ("Elemental Altus" or the "Company") notes that following the announcement of an agreement to acquire a portfolio of royalties for US$28 million in Company equity (the "Transaction"), La Mancha Investments S.à r.l ("La Mancha") has notified the Company of its intent to exercise its Anti-Dilution right in full to maintain the same percentage ownership it held prior to completion of the transaction (the "Private Placement").
Frederick Bell, CEO of Elemental Altus, commented: "Following announcement of the AlphaStream Transaction, the exercise of La Mancha's Anti-Dilution Right provides the Company with a further C$17.7 million in cash to continue to grow our royalty portfolio. We look forward to working with La Mancha and AlphaStream to add value moving forwards."
La Mancha Private Placement
Pursuant to the Investor Rights Agreement between an affiliate of La Mancha and the Company, La Mancha has confirmed its intention to exercise its Anti-dilution Right in totality and subscribe for 16,141,940 Common Shares, or such other number of Common Shares as will allow La Mancha to achieve the same percentage ownership as it holds in the Company prior to the completion of the Transaction, subject to completion of the Transaction. The subscription price for the Common Shares will be C$1.10 per share for aggregate proceeds of C$17,756,134. The closing of the Private Placement is expected to occur proximate to the closing of the Transaction and Company will use the proceeds for royalty acquisitions, working capital, and general corporate purposes.
Shares issued to La Mancha pursuant to its Anti-dilution Right will be subject to restrictions on transfer for a period of four months plus a day pursuant to Canadian securities laws and TSX Venture Exchange requirements and are subject to certain conditions including the approval of the TSX Venture Exchange.
Vancouver, British Columbia--(Newsfile Corp. - October 30, 2024) - Elemental Altus Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) ("Elemental Altus" or the "Company") notes the announcement by Capricorn Metals Ltd (ASX: CMM) ("Capricorn") of a material production expansion at the Karlawinda Gold Project ("Karlawinda") where Elemental Altus holds an uncapped 2.0% Net Smelter Return ("NSR") royalty. Capricorn are targeting annual gold production of 150,000 ounces, driven by an increase of total processing capacity to 6.5 Mtpa (Note 1). Karlawinda is a cornerstone asset for Elemental Altus, contributing US$4.6 million in zero-cost revenue in 2023.
Highlights
Frederick Bell, CEO of Elemental Altus, commented:
"We are excited to note Capricorn's Board approved a major A$120 million expansion at Karlawinda, increasing production to 150,000 ounces per annum over an initial 10-year mine life. Karlawinda is a cornerstone royalty for Elemental Altus, contributing US$4.6 million in revenue to the portfolio in 2023 and US$2.5 million in in H1 2024. The completion of the expansion study highlights the upside at the project with planned production increases complementing resource growth to-date. In addition, the production expansion is based on existing Reserves with the potential to both increase and convert the Resource down dip, providing Elemental Altus with ongoing upside.
Capricorn's management team have an excellent track record of mine builds and expansions across Australia and we look forward to following their progress."
Financial Highlights
Royalty Highlights
