Business
Elemental Altus Generates Two New Gold & Copper Royalties in Ethiopia
Vancouver, British Columbia--(Newsfile Corp. - July 25, 2023) - Elemental Altus Royalties Corp. (...
About this update from Elemental Royalty Corporation
[{"type":"text","content":"Elemental Altus Generates Two New Gold & Copper Royalties in EthiopiaVancouver, British Columbia--(Newsfile Corp. - July 25, 2023) - Elemental Altus Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) (\"Elemental Altus\" or \"the Company\") announces the generation of two new gold and copper Net Smelter Return (\"NSR\") royalties, through the execution of a Sale & Purchase Agreement for the sale of 95% of its Ethiopian focused Seychelles incorporated subsidiary Altau Resources Ltd. to Canadian incorporated ANS Exploration Corp. (\"ANS\") (the \"Transaction\"). Through its local branch, Altau holds a 100% interest in the 299.5 km2 Daro and 284.9 km2 Zager licences (the \"Projects\") located in the Arabian-Nubian shield geology of northern Ethiopia. The Projects are prospective for the discovery of Volcanogenic hosted Massive Sulphide (\"VMS\") copper and gold deposits.Highlights:Royalty generation transaction with ANS on Copper and Gold Projects in northern Ethiopia signed July 21 2023Transaction consideration includes:Two uncapped 2.5% NSR royalties over highly prospective ground US$200,000 in cash with US$50,000 upfront and 5 quarterly payments of US$30,0005% equity interest in Altau retained, non-dilutable until completion of a feasibility study Up to 5% equity interest in ANS upon any future Initial Public Offering of ANS equityMilestone performance cash payments (for delivery on either of the Projects) of:US$500,000 upon a compliant resource above 1 million ounces (gold equivalent)US$500,000 on publication of a feasibility studyANS has a 5 year buy-back option on up to 1% of the royalties for US$1.5 million eachANS selected by Company given their high-calibre management and technical team with proven experience in East AfricaTransaction remains subject to a number of administrative conditionsFrederick Bell, CEO of Elemental Altus, commented:\"We are delighted to complete this royalty generation transaction with ANS on two strategically located gold and copper licences totalling 584 km2 in northern Ethiopia. The Projects were selected by our technical team based on their geological potential to host economic VMS-style deposits, as mined elsewhere on the Arabian-Nubian shield. Our shareholders will benefit from exposure to two new 2.5% NSR royalties, cash of US$200,000, performance milestone payments and retained project equity. T...