Elemental Altus Royalties Announces Acquisition of New Royalty Being Advanced by Rio Tinto Exploration
Elemental Altus Royalties Announces
Acquisition of New Royalty Being Advanced by
Rio Tinto Exploration
Vancouver, British Columbia--(Newsfile Corp. - May 8, 2024) - Elemental Altus Royalties Corp. (TSXV:
ELE) (OTCQX: ELEMF) ("
Elemental Altus
" or the "
Company
") is pleased to announce the acquisition
of up to a 1.40% net smelter return royalty ("
NSR
") from Aterian Plc ("
Aterian
") over the HCK Lithium
Project in the Republic of Rwanda ("
Rwanda
") currently under a Joint Venture agreement with Rio Tinto
Mining and Exploration Ltd ("
Rio Tinto
").
Highlights:
New 1.25%-1.40% lithium NSR royalty acquired by Elemental Altus
Royalty covers HCK Project in Rwanda operated and managed by Rio Tinto
Option to be granted second royalty on additional Musasa lithium permit in Rwanda
Frederick Bell, CEO of Elemental Altus, commented:
"We are excited to add another highly prospective exploration royalty to the portfolio which is being
advanced by Rio Tinto. Historical work at the HCK project has identified 19 separate LCT (lithium-
caesium-tantalum) pegmatite zones offering the prospective scale necessary to attract a major
partner such as Rio Tinto. We look forward to following the developments at site as valuable data is
collected on the lithium, tantalum, tin, and niobium prospects to understand the exploration potential
and define drill targets.
The transaction was completed on a non-cash basis allowing Elemental Altus to maintain its cash
balance. We are also supporting Aterian, who operates a number of the Company's royalties,
strengthening its balance sheet by extinguishing debt."
Transaction Summary
In exchange for a non-cash consideration of £200,000 via extinguishment of existing debt, Aterian has
transferred no less than a 1.25% NSR, capped at US$31.25 million over a larger area, or up to 1.4%
NSR, capped at US$35 million over a reduced area, to Elemental Altus Royalties. The amount of the
transfer is dependent upon the royalty coverage ("
Licence Base
") being either greater or less than
3,100 hectares. The Licence Base is defined as the total aggregate number of hectares of land under
exploration permit covered by HCK (2,750 hectares currently granted and royalty issued to the
Company) and the Musasa Project (permit pending approval). Should the Licence Base exceed 3,100
hectares then the NSR will be apportioned 1.25% to Elemental Altus, whereby the Company will have
two royalties granted on both the HCK and Musasa licences on substantially the same terms. Should the
Licence Base not exceed 3,100 hectares then the NSR will be 1.40% covering just the HCK licence.
The HCK Project
Kinunga Mining Limited (a JV between Aterian (70%) and HCK Mining Company Limited (30%), a
private, non-related Rwandan registered entity) holds a 2,750-hectare exploration licence in southern
Rwanda. The licence is located approximately 65 km southwest of Kigali and 20 km northwest of Huye,
within the Southern Province, straddling the Nyanza and Huye District boundaries. On August 1
st
2023,
Aterian signed a definitive Earn-In Investment and Joint Venture Agreement with Rio Tinto and Kinunga
Mining Ltd. The Agreement is for the exploration and development of lithium and by-products and
outlines an option for Rio Tinto to invest US$7.5 million in two stages to earn up to a 75% interest.
About Aterian
Aterian is an LSE-listed exploration and development company with a diversified African portfolio of
critical metals projects. Elemental Altus owns approximately 16% of the issued shares of Aterian,
together with rights to subscribe for new shares comprising approximately 6% of the share capital of
Aterian. In addition to this, the Company holds a number of royalties over other projects owned by
Aterian. Collingwood Capital Partners acted as financial advisor to Aterian in the sale of the HCK
royalty.
Appointment of Corporate Secretary
Elemental Altus is pleased to announce the appointment of David Baker to the position of Corporate
Secretary. David is currently the Chief Financial Officer of the Company and has 13 years' experience in
mining corporate finance, starting his career at BMO Capital Markets.
Frederick Bell
CEO and Director
Corporate & Media Inquiries:
Tel: +1 604 646 4527
www.elementalaltus.com
Elemental Altus is a proud member of Discovery Group. For more information please visit:
www.discoverygroup.ca
.
TSXV: 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.
Notes
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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/208364