Elemental Altus Royalties Provides Asset and Corporate Update
Elemental Altus Royalties Provides Asset and
Corporate Update
Vancouver, British Columbia--(Newsfile Corp. - July 4, 2024) - Elemental Altus Royalties Corp. (TSXV:
ELE) (OTCQX: ELEMF)
("
Elemental Altus
" or the "
Company
") announces continued progress at the
Company's Diba royalty, further repayment of the Company's credit facility alongside its extension,
portfolio payments relating to Ming and Egypt and the reduction in the number of the Company's
outstanding common shares.
Diba Development and Exploration
The Company notes that alongside expected maiden production from Diba, Allied Gold Corp (TSX:
AAUC) ("
Allied
") have announced that their 12,000 meter drilling program is targeting extending the
Mineral Resources at Diba. This is significant as the exploration program is designed to prioritise near-
mine oxides and comes on top of the previously announced initial Proven and Probable Reserves of
280,000 ounces of gold at 1.43 g/t within the larger 377,000 ounces of gold in Measured and Indicated
Resources that was announced in February 2024.
Diba is expected to materially contribute to production at Sadiola from mid-2024 and Allied have fast-
tracked it into production this year, while simultaneously undertaking aggressive exploration to expand
the Resource. Elemental Altus owns a 3% NSR royalty on the first 226,000 ounces produced at Diba
and an uncapped 2% NSR royalty on all subsequent production. The consideration also included multiple
production-based milestones totalling up to US$6 million and for which the Company has received the
first US$1 million with further payments anticipated this year.
Credit Facility Extension and Debt Repayment
In June 2024, the maturity date of the Company's up to US$50 Million Credit Facility with National Bank
of Canada and Canadian Imperial Bank of Commerce (the "
Facility
") was extended from December
2025 to June 2027. The commercial terms of the Facility have been improved from the original
agreement in December 2022.
Alongside the extension of the Facility, the Company made a further repayment of $5 million of the
Facility, reducing the drawn balance to $20 million and increasing the unutilized amount of the Facility to
$20 million, plus another US$10 million available under certain conditions.
The Company has repaid US$10 million in the first half of this year and expects to continue to actively
pay down outstanding debt when not making new acquisitions, with over US$5 million cash remaining on
hand.
Share Surrender
In order to satisfy tax obligations the Company has acquired, for no consideration, and cancelled an
aggregate of 814,321 common shares in the capital of the Company (the "
Surrendered Shares
")
surrendered by certain former and current management personnel (the "
Holders
") relating to the prior
exercise of performance stock units of the Company, effective as of July 4, 2024.
Following the cancellation of the Surrendered Shares and as of the date of this announcement, the
Company has 195,176,071 issued and outstanding common shares in the capital of the Company (the
"
Shares
"). The Surrendered Shares represent 0.42% of the Company's issued Share capital
immediately prior to the cancellation of the Surrendered Shares.
For complete details, please refer to the Material Change Report available on SEDAR+
(
www.sedarplus.ca
).
Portfolio Payments
Following a settlement of certain outstanding claims, Elemental Altus received in June an additional
US$0.3 million in relation to the Company's Ming gold stream. Elemental Altus received an initial US$2.3
million in shares of Firefly Metals Ltd ("
Firefly
") (ASX: FFM) in February 2024 and will receive a further
approximately US$9.8 million split equally between cash and equity in April 2025.
A further amount remains held back subject to final determinations, with any remaining balance to be
paid to Elemental Altus in cash.
As well as future payments related to Diba, Ethiopia and Ming, Elemental Altus expects to shortly receive
a further US$0.4 million from In2Metals Explorer S.à r.l. ("
In2Metals
") in respect of its sale of Akh Gold
Ltd's Egyptian licences.
The Company sold 80.1% of Akh Gold in August 2024 for a US$10 million exploration commitment, a
1.5% NSR royalty on Egyptian licences and licence applications totalling 1,914km
2
at the time, cash of
US$1.1 million on closing and US$0.4 million on or before August 30, 2024. A milestone payment of
US$5 million on definition of a 3 million ounce gold resource before February 2031 remains alongside
rights to co-fund its 19.9% equity interest in Akh Gold following the completion of the US$10 million
investment.
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
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.
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.
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.
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 expected maiden production from Diba,
Diba's expectation to materially contribute to production at Sadiola, the Company's ability to actively pay
down outstanding debt, 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/215513