Dave Cole, President and CEO of EMX Royalty Corp (TSX.V: EMX) (NSYE: EMX), joins us for a comprehensive update on a number of copper, zinc, silver, and gold royalty partner project updates, and a higher level look at the path forward for the Company with incoming revenues generated.
We start off discussing the multi-prong approach of generating revenues from existing properties optioned off to other operators, creating royalties by providing funds in exchange for royalties or buying royalties, and then the strategic equities held in other mining companies. At present EMX Royalty has 6 producing royalties and around 50 other royalties bringing in revenues due to defined pre-production payments, option payments, and gate payments.
Next we recapped the news out on Sept 12th which announced the receipt of $6,675,947 in royalty proceeds from its Timok royalty property with Zijin (Europe) International Mining Company Ltd., a wholly owned subsidiary of Zijin Mining Group Ltd. EMX and Zijin have agreed that the Timok royalty will consist of a 0.3625% Net Smelter Return (NSR) royalty that is uncapped and cannot be repurchased or reduced. The royalty covers Zijin’s Brestovac exploration permit area (including the Cukaru Peki Mining licenses), as well as portions of Zijin’s Jasikovo-Durlan Potak exploration license north of the currently active Bor Mine.
In discussing the Timok Project as generational copper asset that will generate revenues for EMX long into the future on their royalty holding, it transitioned over to another cornerstone royalty asset in their portfolio on the another long-life copper mine at Casserones in Chile operated by Lundin Mining.
Then we touched on 2 more recent announcements starting with the Oct 2nd news which updated the market on EMX’s Hardshell royalty property, which is part of South32 Ltd’s Hermosa Project in southeast Arizona. Recent drill results from the Peake prospect, which is partially covered by the Hardshell royalty, include the best intercept to date in hole HDS-813 reported as 139 meters (1302.7-1441.7 m) averaging 1.88% copper, 0.51% lead, 0.34% zinc, and 52 g/t silver, with a subinterval of 58.2 meters averaging 3.1% copper, 0.6% lead, 0.24% zinc, 74g/t silver and 0.015% molybdenum. EMX retains a 2% net smelter return (NSR) royalty on Hardshell that is not capped nor subject to buy down.
Wrapping up we discussed the news out September 13th option agreement for EMX’s Copperhole Creek polymetallic project in Queensland, Australia to Lumira Energy Ltd., a private Australian Company. The agreement provides EMX with a 2.5% Net Smelter Return royalty interest, cash and equity payments, work commitments and other considerations.
If you have any questions for Dave regarding EMX Royalty Corp, then please email Shad@kereport.com.
- In full disclosure, Shad is a shareholder of EMX Royalty at the time of this recording.
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