Elemental Altus Notes Development Approval of Diba Project by Allied Gold
Elemental Altus Notes Development Approval
of Diba Project by Allied Gold
Vancouver, British Columbia--(Newsfile Corp. - September 18, 2023) - Elemental Altus Royalties Corp.
(TSXV: ELE) (OTCQX: ELEMF) ("
Elemental Altus
" or "the
Company
") notes that Allied Gold
Corporation ("
Allied Gold
") has approved commencement of development work at the Diba gold project
("
Diba
"), which is contiguous with their flagship Sadiola gold mine in western Mali. Production at Diba is
expected to commence in the first half of 2024 and the Company holds an initial 3% Net Smelter Return
("
NSR
") royalty, along with additional milestone payments.
Highlights
New producing royalty expected in first half of 2024 from Diba gold project in western Mali
Diba is located approximately 15km from Allied Gold's flagship Sadiola Gold mine
Allied Gold has approved US$12 million of capital expenditure to fast-track development at Diba
Will represent material revenue growth with over 6,000 attributable Gold Equivalent Ounces
("GEOs") forecast over 2024-2025
Elemental Altus holds a 3% NSR royalty on the first 226,000 ounces produced from a defined
resource and a 2% NSR uncapped royalty on all future production from 107km
2
project area
The Company will also receive up to US$6 million in milestone payments that are anticipated to be
paid in parallel with Diba royalty revenue
In July 2023, the Company announced the sale of Diba to Allied Gold which is still subject to close
Excellent potential for further expansion from existing resources and future exploration
Frederick Bell, CEO of Elemental Altus, commented:
"We welcome Allied Gold's announcement that our recently sold Diba project, which is contiguous with
their flagship 10 million ounce Sadiola mine, is being fast-tracked in to production in H1 2024. The
combination of royalty revenue and milestone payments from Diba will contribute meaningfully to our
revenue growth, with over 6,000 GEOs and up to $6 million in cash payments over 2024 and 2025.
There remains a material resource across the project and significant exploration upside that we
believe will deliver considerable future value to Elemental Altus shareholders."
Diba Gold Project, Western Mali
On September 11, 2023, Allied Gold announced that it commenced trading on the Toronto Stock
Exchange under the ticker AAUC, having completed a US$267 million financing. The net proceeds of
the financing will be used in part to carry out its planned growth strategy, including capital expenditure of
US$61.6 million for the Phase 1 Expansion of the Sadiola mine and an additional US$12 million
specifically for the advancement of Diba.
Capital investment at Diba is intended to cover the construction of an ore haulage road, infrastructure
upgrades and delineation drilling with the objective of processing ore from Diba in the first half of 2024.
Approximately 200,000 ounces of gold within the oxide and transitional categories are identified as
readily available to be fast-tracked by Allied Gold and are the focus of the planned conversion to Mineral
Reserves to be mined in 2024-2025.
On July 20, 2023, Elemental Altus announced that it had executed a Sale & Purchase Agreement
("
SPA
") with Allied Gold for the sale of the Company's then 100% owned subsidiary Legend Mali (BVI) III
Inc. which indirectly owns 100% of the Korali-Sud Small Scale Mining Licence ("
Korali Sud
") that
contains the Diba deposit, and the Lakanfla Exploration Licence ("
Lakanfla
").
The Korali Sud and Lakanfla licences host a resource of 312,000 ounces of gold with a grade of 1.24 g/t
in the Indicated Category, including 199,000 ounces of gold in oxides with an average grade of 1.52 g/t,
and 362,000 ounces of gold at 0.88 g/t in the Inferred Category. Additional excellent potential exists for
further expansion beyond the existing Resource based on the 107 square km project area in the same
geological district as Sadiola, with historical drill results including 4.78 g/t over 12m from the Diba NW
prospect and 1.23 g/t Au over 127m from the Lakanfla Central prospect, with potential for 'Yatela type'
carbonate-hosted karst targets at Lakanfla.
The consideration for the sale of the Korali Sud and Lakanfla licences is comprised of a 3% NSR royalty
on the first 226,000 ounces of production from the Diba deposit and a 2% NSR royalty on production
thereafter from both Korali-Sud and Lakanfla. On Closing of the SPA, Allied Gold will pay US$1 million in
cash to the Company. Allied Gold will pay a further US$1 million 90 days after commercial production or
the earlier of December 31, 2025, if commercial production has not occurred. Allied Gold will make a
further payment of US$2 million within 90 days of production of 100,000 ounces from Korali-Sud and an
additional US$1 million payment when cumulative production reaches each of 150,000 ounces and then
200,000 ounces from Korali-Sud.
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 a revenue 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.
Qualified Person
Richard Evans, FAusIMM, is Senior Vice President Technical 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
December 31, 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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https://www.newsfilecorp.com/release/180957