Elemental Altus to Acquire Further Royalty Interest on Caserones Copper Mine
Elemental Altus to Acquire Further Royalty
Interest on Caserones Copper Mine
Vancouver, British Columbia--(Newsfile Corp. - March 9, 2023) - Elemental Altus Royalties Corp.
(TSXV: ELE) (OTCQX: ELEMF) ("
Elemental Altus
" or "the
Company
") announces that it has entered
into a binding agreement (the "
Agreement
") to acquire an additional 0.025% effective net smelter return
("
NSR
") royalty (the "
Royalty
") on the producing Caserones Copper-Molybdenum mine ("
Caserones
"),
located in the Atacama region of northern Chile, for consideration of approximately US$2M in cash (the
"
Acquisition
"). Elemental Altus now holds an effective 0.443% NSR royalty on Caserones.
Acquisition Highlights
Immediate revenue from additional uncapped royalty on the producing Caserones copper mine
Acquisition increases the effective royalty held by the Company to 0.443% NSR
Caserones is owned and operated by industry leader JX Nippon Metals and Mining ("
JX
Nippon
")
Bolsters the Company's existing diversified revenue base in leading mining jurisdictions
Acquisition will be completed in combination with existing joint royalty holders
Frederick Bell, CEO of Elemental Altus, commented:
"We're delighted to add to our cornerstone, cash-paying Caserones copper royalty in Chile, further
expanding our peer-leading revenue profile. Acquiring uncapped, revenue generating royalties on
long life assets is central to our core philosophy and the Caserones mine, operated by industry
leaders JX Nippon, will continue to add value for our shareholders over many years to come."
Terms of the Acquisition
The Caserones mine is subject to a 2.88% NSR royalty created in a 2009 agreement between SCM
Minera Lumina Copper Chile S.A., as purchaser, and Compañía Minera Caserones ("
CMC
") and
Sociedad Legal Minera California Una de la Sierra Peña Negra ("
SLM California
"), as vendors. CMC
and SLM California originally held the mineral concessions that cover the Caserones deposit.
Ownership of the 2.88% NSR royalty is currently divided between CMC (32.5%) and SLM California
(67.5%). SLM California's sole current purpose is to distribute its royalty income to its shareholders as
dividends and pay Chilean taxes on its income.
Elemental Altus has agreed to purchase an additional 1.289% ownership in SLM California for cash
consideration of US$2,004,302 pursuant to the Agreement with existing shareholders of SLM California.
The Acquisition equates to an effective purchase of a further 0.025% NSR interest, increasing the
Company's NSR interest to 0.443%.
Caserones Mine Overview
The Caserones mine is a large, open-pit porphyry copper-molybdenum deposit, located within a 170km
2
land package at an elevation of approximately 4,300m above sea level in the borough of Tierra Amarilla,
in the Atacama region of northern Chile. The mine is approximately 15km from the border with Argentina,
162km southeast of the city of Copiapó and 800km north of the capital, Santiago.
Located at the southern end of the well-documented Maricunga mineral belt, the geology of Caserones
comprises an Early-Miocene porphyry system associated with a cluster of dacite porphyries and
breccias intruding Palaeozoic granitic, volcanic, and metamorphic rocks. Caserones has a well-
developed supergene enrichment profile of oxide copper and secondary chalcocite that overlies
hypogene sulfide (chalcopyrite-molybdenite) mineralisation.
The mine is owned and operated by Sociedad Contractual Minera Lumina Copper Chile ("MLCC"), an
indirect 100% owned subsidiary of JX Nippon of Japan. It produces copper and molybdenum
concentrates from a conventional crusher, mill and flotation plant, as well as copper cathodes from a
dump leach, solvent extraction and electrowinning plant and has been in operation since 2014.
On behalf of Elemental Altus Royalties Corp.
Frederick Bell
CEO and Director
Corporate & Media Inquiries:
Frederick Bell, CEO
Direct: +44 (0) 7554 872 794
www.elementalaltus.com
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 11 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. For additional technical
and scientific information in respect of the Caserones royalty, please refer to the Altus Strategies plc's
technical report titled "NI 43-101 Technical Report Caserones Copper-Molybdenum Mine Royalty
Region III, Chile" dated May 20, 2022, with an effective date of February 28, 2022, a copy of which is
available under Alts Strategies plc' profile at
www.sedar.com
.
Notes
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 31
December 2021. 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/157729