Fred Bell, CEO of Elemental Altus Royalties (TSX.V:ELE – OTCQX:ELEMF) joins us to review the growing importance of the cornerstone Caserones copper royalty in Chile, the project sale and new net smelter royalty at the Diba Gold Project in Mali to Allied Gold, and the generation of two new gold and copper royalties off exploration-stage projects in Ethiopia.
We start off diving in a bit more to why the Company has acquired an additional Net Smelter Royalty (NSR) interest on the Caserones copper-molybdenum mine in Chile for a total cash consideration of US$2.6 million. On July 19th, 2023 Lundin Mining Corporation closed the acquisition of 51% of the Caserones copper-molybdenum mine for $950 Million. Additionally , Lunin Mining has announced H1 2023 production results, released an updated NI 43-101 technical report at Caserones, and highlighted the optimization and exploration potential at the mine. Elemental Altus holds an effective 0.473% NSR on the project.
Next we pivoted over to the Sale & Purchase Agreement with Allied Gold Corporation for the sale of the Company’s 100% owned subsidiary Legend Mali (BVI) III Inc. which indirectly owns 100% of the Korali-Sud Small Scale Mining Licence & Lakanfla Exploration Licence (combined “Diba Project”) in western Mali. As consideration, Allied will pay up to US$6 million in cash and grant a NSR royalty of up to 3% on gold produced from the Project. Fred unpacks why the Company believes this Allied Gold Corp, with a major near-term production project adjacent to the Diba Project, is the right operator to not only generate solid production which will be very accretive via the 3% net smelter royalty, but also will be able to more effectively explore the property to continue growing the potential upside. We also review why continuing to spend money internally to explore and develop this project was not going to generate the future value or revenues that this transaction will, as this asset can now be more efficiently fast-tracked into a producing royalty.
We wrap up having Fred outline the key takeaways from the news out July 25th announcing the generation of two new gold and copper Net Smelter Return royalties, through the execution of a Sale & Purchase Agreement for the sale of 95% of its Ethiopian focused Seychelles incorporated subsidiary Altau Resources Ltd. to Canadian incorporated ANS Exploration Corp. We discuss the team, their vision and strategy around exploration, and how this allows Elemental Altus to experience the exploration potential with a competent operating partner, but also reduces associated costs.
If you have any follow up questions for Fred regarding Elemental Altus Royalties or the royalty sector please email us at Fleck@kereport.com and Shad@kereport.com.
- In full disclosure, Shad is a shareholder of Elemental Altus Royalties
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