Elemental Altus Generates Two New Gold & Copper Royalties in Ethiopia
Elemental Altus Generates Two New Gold &
Copper Royalties in Ethiopia
Vancouver, British Columbia--(Newsfile Corp. - July 25, 2023) -
Elemental Altus Royalties Corp. (TSXV:
ELE) (OTCQX: ELEMF) ("
Elemental Altus
" or "
the
Company
") announces the generation of two new
gold and copper Net Smelter Return ("
NSR
") 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. ("
ANS
") (the "
Transaction
"). Through
its local branch, Altau holds a 100% interest in the 299.5 km
2
Daro and 284.9 km
2
Zager licences (the
"
Projects
") located in the Arabian-Nubian shield geology of northern Ethiopia. The Projects are
prospective for the discovery of Volcanogenic hosted Massive Sulphide ("
VMS
") copper and gold
deposits.
Highlights
:
Royalty generation transaction with ANS on Copper and Gold Projects in northern Ethiopia signed
July 21 2023
Transaction consideration includes:
Two uncapped 2.5% NSR royalties over highly prospective ground
US$200,000 in cash with US$50,000 upfront and 5 quarterly payments of US$30,000
5% equity interest in Altau retained, non-dilutable until completion of a feasibility study
Up to 5% equity interest in ANS upon any future Initial Public Offering of ANS equity
Milestone performance cash payments (for delivery on either of the Projects) of:
US$500,000 upon a compliant resource above 1 million ounces (gold equivalent)
US$500,000 on publication of a feasibility study
ANS has a 5 year buy-back option on up to 1% of the royalties for US$1.5 million each
ANS selected by Company given their high-calibre management and technical team with proven
experience in East Africa
Transaction remains subject to a number of administrative conditions
Frederick Bell, CEO of Elemental Altus, commented:
"We are delighted to complete this royalty generation transaction with ANS on two strategically located
gold and copper licences totalling 584 km
2
in northern Ethiopia. The Projects were selected by our
technical team based on their geological potential to host economic VMS-style deposits, as mined
elsewhere on the Arabian-Nubian shield. Our shareholders will benefit from exposure to two new 2.5%
NSR royalties, cash of US$200,000, performance milestone payments and retained project equity.
This transaction exemplifies our capacity to generate organic value by working with high quality
counterparties".
Christopher Schmidt, COO of ANS, commented:
"We are excited to commence field work on these two highly prospective licences in Ethiopia to
generate drill ready targets for 2024. Both licences are a great addition to our exploration portfolio in
the Nubian Shield.
The extensive outcrop of Neoproterozoic intra-oceanic island arc and back-arc
basin complexes is prospective for near surface base metal discoveries".
On behalf of Elemental Altus Royalties Corp.
Frederick Bell
CEO and Director
Corporate & Media Inquiries:
Jacy Zerb, VP Investor Relations
Direct: +1 604-243-6511 ext. 2700
Elemental Altus is a proud member of Discovery Group. For more information please visit:
www.discoverygroup.ca
or contact 604-653-9464.
TSX.V: ELE | OTCQX: ELEMF | ISIN: CA28619K1093 | CUSIP: 28619K109
About Elemental Altus Royalties Corp.
Elemental Altus is an income generating precious metals royalty company with 10 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.
About ANS Exploration Co.
ANS Exploration is a private Canadian mineral exploration company, focused on the discovery of world-
class deposits in the highly prospective Nubian Shield through systematic mineral exploration and big
data approach. The ANS technical team, with extensive experience in East Africa, is currently exploring
for base- and battery metal deposits in Sudan and Ethiopia.
Qualified Person
Steven Poulton, Executive Chairman for Elemental Altus, and a qualified person under National
Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the
scientific and technical disclosure contained in this press release.
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 the Company for the year ended 31
December 2022. 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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