Elemental Altus Divests Copper Subsidiary, Generates 16 New Royalties
Elemental Altus Divests Copper Subsidiary,
Generates 16 New Royalties
Vancouver, British Columbia--(Newsfile Corp. - October 25, 2022) - Elemental Altus Royalties Corp.
(TSXV: ELE) (OTCQX: ELEMF) ("
Elemental Altus
" or "the
Company
") announces the completion of
the vend-out ("
Transaction
") of its 100% owned Morocco-focused copper subsidiary Aterian
Resources Ltd ("
Aterian
") to Eastinco Mining and Exploration plc ("
Eastinco
"). Aterian owns a 100%
interest in 15 prospective projects primarily targeting copper and silver covering 762km
2
("
Projects
").
Completion of the Transaction follows the satisfaction of certain conditions precedent, including
admission to trading of the entire issued share capital of Eastinco to the Official List of the FCA
(Standard Segment) ("
Admission
") and to trading on the London Stock Exchange's Main Market for
listed securities ("
LSE
").
In consideration, Elemental Altus has received:
a 2.50% net smelter return ("
NSR
") royalty over each of the 15 Projects, with Eastinco retaining
certain buyback rights of up to 1.0% of each NSR royalty for US$0.5 million per 0.5%
a 0.5% NSR royalty over Eastinco's Musasa tantalum operation in Rwanda
241,173,523 shares in Eastinco representing 25% of the issued share capital of Eastinco valued
at approximately £2,500,000 (approximately US$2,874,038) on Admission. The shares are
subject to a customary 12-month lock in period and a further 12-month orderly market provision
five-year warrants to purchase up to an additional 10% of the enlarged share capital of Eastinco,
with 50% of the warrants having an exercise price of £0.01 per share and the balance having an
exercise price of £0.02 per share
Eastinco will reimburse the Company up to £250,000 (approximately US$287,404) in cash in
respect of certain historic exploration expenditures
Under the terms of the Transaction, Elemental Altus' Executive VP of Royalty Investments, Alister Hume,
has been appointed as a Non-Executive Director of Eastinco.
Eastinco anticipates changing its name to Aterian plc, as part of its strategy to acquire and develop new
critical metal resources and strengthen its existing asset base whilst supporting ethical and sustainable
supply chains.
Frederick Bell, CEO of Elemental Altus, commented:
"We are delighted to complete this royalty generation transaction on a portfolio of copper assets in
Morocco as well as tantalum in Rwanda. Elemental Altus shareholders will also retain exposure to the
projects, through a 25% equity interest in Eastinco. This transaction demonstrates the value of our low
cost and high impact royalty generation activities."
About Elemental Altus Royalties Corp.
Elemental Altus is an income generating precious metals royalty company with 11 producing royalties
and a diversified portfolio of pre-production and discovery stage assets. The Company is focused on
acquiring uncapped royalties and streams over producing, or near-producing, mines operated by
established counterparties, as well as generating royalties on new discoveries. The vision of Elemental
Altus is to build a global gold royalty company, offering investors superior exposure to gold with reduced
risk and a strong growth profile.
On behalf of Elemental Altus Royalties Corp.
Frederick Bell
CEO and Director
Corporate & Media Inquiries:
Michael Starke, Investor Relations Manager
Direct: +44 (0) 203 983 7040
www.elementalaltus.com
Elemental Altus is a proud member of Discovery Group. For more information please visit:
www.discoverygroup.ca
or contact 604-653-9464.
(TSXV: ELE) | (OTCQX: ELEMF) | ISIN: CA28619K1093 | CUSIP: 28619K109
Notes
Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-
V.) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary note regarding forward-looking statements
This news release contains certain "forward looking statements" and certain "forward-looking
information" as defined under applicable Canadian securities laws. Forward-looking statements and
information can generally be identified by the use of forward-looking terminology such as "may", "will",
"should", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology.
Forward-looking statements and information include, but are not limited to, statements with respect to
the date that the name change is expected to become effective, whether shareholders will be required by
their broker to exchange their issued certificate for a new certificate or take any other action in
connection to the name change, the Company's ability to deliver a materially increased revenue profile
with a lower cost of capital, the future growth, development and focus of the Company, and the
acquisition of new royalties and streams. Forward-looking statements and information are based on
forecasts of future results, estimates of amounts not yet determinable and assumptions that, while
believed by management to be reasonable, are inherently subject to significant business, economic and
competitive uncertainties and contingencies.
Forward-looking statements and information are subject to various known and unknown risks and
uncertainties, many of which are beyond the ability of Elemental Altus to control or predict, that may
cause Elemental Altus' actual results, performance or achievements to be materially different from those
expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties
and other factors set out herein, including but not limited to: the impact of general business and
economic conditions, the absence of control over the mining operations from which Elemental Altus will
receive royalties, risks related to international operations, government relations and environmental
regulation, the inherent risks involved in the exploration and development of mineral properties; the
uncertainties involved in interpreting exploration data; the potential for delays in exploration or
development activities; the geology, grade and continuity of mineral deposits; the impact of the COVID-
19 pandemic; the possibility that future exploration, development or mining results will not be consistent
with Elemental Altus' expectations; accidents, equipment breakdowns, title matters, labour disputes or
other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs
and expenses; uncertainties relating to the availability and costs of financing needed in the future; the
inherent uncertainty of production and cost estimates and the potential for unexpected costs and
expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including
environmental regulatory restrictions; liability, competition, loss of key employees and other related risks
and uncertainties. For a discussion of important factors which could cause actual results to differ from
forward-looking statements, refer to the annual information form of Elemental Altus for the year ended 31
December 2021. Elemental Altus undertakes no obligation to update forward-looking statements and
information except as required by applicable law. Such forward-looking statements and information
represents management's best judgment based on information currently available. No forward-looking
statement or information can be guaranteed, and actual future results may vary materially. Accordingly,
readers are advised not to place undue reliance on forward-looking statements or information.
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https://www.newsfilecorp.com/release/141866