Elemental Altus Receives Further Payments from Project Partnerships and Grants Options
Elemental Altus Receives Further Payments
from Project Partnerships and Grants Options
Vancouver, British Columbia--(Newsfile Corp. - October 7, 2024) - Elemental Altus Royalties
Corp. (TSXV: ELE) (OTCQX: ELEMF) ("
Elemental Altus
" or the "
Company
") announces the closing
of the sale of its Ethiopian exploration assets to Canadian incorporated ANS Exploration Corp. ("
ANS
").
Alongside this, the Company has received a further US$400,000 payment from In2Metals Explorer S.à
r.l ("
In2Metals
") relating to its August 2023 subscription for a majority stake in Akh Gold Ltd, the holder
of a number of highly prospective licences in Egypt.
Frederick Bell, CEO of Elemental Altus, commented:
"We are pleased to have followed the progress made by ANS over the course of the year and for the
transaction to formally close following in-country approvals. We will maintain our exposure to
exploration optionality through our retained 2.5% NSR royalties on the Daro and Zager projects,
milestone payments of up to $1 million as the project progresses through studies and 5% equity
interest in the holding company. We will also gain exposure to future value creation and exploration
upside across ANS's portfolio through the issue of equity in the parent company.
Alongside the progress in Ethiopia, In2Metals are currently undertaking their second drill campaign in
Egypt since the acquisition of a majority stake in our subsidiary Akh Gold a year ago and continue to
make significant investments in systematically advancing the projects. Centamin's Little Sukari
discovery 10km to the southeast of our Wadi Dubur prospect highlights the prospectivity of the region
and we look forward to following progress.
As part of the original agreement, we recently received a further payment of US$400,000, while we
remain 19.9% shareholders in Akh Gold until US$10 million has been invested. At that point, we have
the right to co-fund our equity interest, while retaining additional optionality through milestone
payments and our 1.5% NSR royalty across all licences.
The successful partnering of the Diba-Lakanfla project with Allied Gold, the Egyptian portfolio with
In2Metals, the Moroccan portfolio with Aterian and the Ethiopian portfolio with ANS has resulted in the
creation of over 20 royalties now attributable to Elemental Altus, while returning approximately US$2.5
million in cash to-date and with Diba becoming a material revenue contributor to the portfolio. Our
partners have invested multiples of what we could have spent over the last year advancing the
projects, while we have been able to use the cash to both de-leverage and invest in new
opportunities."
Ethiopia
In Q3 2024, the Company closed the sale of its Ethiopian assets to ANS. As part of the closing,
Elemental Altus received an initial cash payment of US$50,000 alongside:
Two uncapped 2.5% NSR royalties
Five quarterly payments of US$30,000
A 5% equity interest 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 of US$500,000 upon a compliant Resource above 1
million ounces (gold equivalent) and 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.
The 299.5km
2
Daro and 284.9km
2
Zager licences (the "
Projects
") are located in the Arabian-Nubian
shield geology of northern Ethiopia. The Projects are prospective for the discovery of Volcanogenic
hosted Massive Sulphide copper and gold deposits.
Since acquisition ANS has completed comprehensive reconnaissance and stream sediment sampling
on both leases with encouraging results, identifying strongly multi-element anomalous gossans and
exhalative rocks consistent with volcanic-associated massive sulphide (VMS) deposits, and other as yet
unexplained anomalies. Follow-up is planned for both tenements, initially through in-fill stream sediment
sampling, following anomalies upstream, and then ground-truthing to identify source rocks; and further
mapping and sampling at identified prospects.
Egypt
The Company also received a further US$400,000 in consideration as part of In2Metals' August 2023
acquisition of a majority 80.1% interest in the Company's formerly wholly owned subsidiary Akh Gold.
Elemental Altus continues to hold an uncapped 1.5% NSR royalty on current licences and licence
applications totalling 1,325km
2
, a milestone payment of US$5 million on definition of a 3-million-ounce
Resource, and 19.9% equity ownership free carried up to US$10 million exploration expenditure by
In2Metals.
Figure 1: Akh Gold licences & prospects
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8358/225793_42cb8b46b41519fc_002full.jpg
The licences cover six project areas targeting orogenic gold, VMS base metal deposits and intrusion-
related gold systems ("
IRGS
"). In2Metals are currently undertaking a comprehensive exploration
campaign within the royalty areas, including on the highly prospective Wadi Dubur licence 40km west of
the world-class ~15 million ounce, ~450,000 ounce per annum Sukari Gold Mine currently operated by
Centamin Plc, under takeover offer from AngloGold Ashanti Plc.
Wadi Dubur is approximately 15km northwest of Centamin's recent Little Sukari and Umm Shaw
discoveries, where drilling of altered granitoids, similar to Sukari itself and consistent with IRGS
deposits, has found wide intersections of medium grade gold from surface. Exploration also continues
on the nearby licences, including the Wadi Jundi, Gabal al Shaluhl and Gabal el Mayyet concessions.
In2Metals is beneficially owned by the Egyptian Sawiris family who is underlining its commitment to
invest directly and proactively into the development of Egypt's mining sector. In2Metals is an affiliate of
the Company's cornerstone shareholder La Mancha Investments S.à r.l.
Grant of Options
The Company has granted 241,000 restricted share units (each "
RSU
") and 600,000 stock options to
directors, officers, and employees who joined the Company in 2024. The RSUs vest in equal instalments
over twelve, twenty-four, and thirty-six months. Each vested RSU will entitle the holder to receive one
common share of the Company or the equivalent cash value thereof at the deemed price of C$1.21. The
RSUs will fully vest on October 1, 2027. The stock options are exercisable for a period of 5 years from
the date of the grant at an exercise price of C$1.31 per Common Share. The stock options vest in four
equal instalments on the date of grant, and on the 6 month, 12 month, and 18 month anniversary thereof.
The stock options will expire on October 1, 2029.
The stock options have been granted to directors, officers, and employees of the Company under the
terms of the Company's stock option and compensation share plan and are subject to regulatory
approval.
Frederick Bell
CEO and Director
Corporate & Media Inquiries:
Tel: +1 604 646 4527
Email:
Elemental Altus is a proud member of Discovery Group. For more information please visit:
www.discoverygroup.ca
or contact 604-646-4527.
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. 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.
On behalf of Elemental Altus Royalties Corp.
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
December 31, 2023. 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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