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Elemental Altus Increases NSR Royalty on Caserones Copper Mine
Vancouver, British Columbia--(Newsfile Corp. - July 12, 2023) - Elemental Altus Royalties Corp. (...
About this update from Elemental Royalty Corporation
[{"type":"text","content":"Elemental Altus Increases NSR Royalty on Caserones Copper MineVancouver, British Columbia--(Newsfile Corp. - July 12, 2023) - Elemental Altus Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) (\"Elemental Altus\" or \"the Company\") announces that it has acquired an additional NSR interest on the Caserones copper-molybdenum mine (\"Caserones\") in Chile for a total cash consideration of US$2.6 million. On March 27, 2023 Lundin Mining Corporation (\"Lundin Mining\") announced its intention to acquire a 51% interest in Caserones for a total consideration of US$950 million.Acquisition HighlightsIncreased interest in uncapped cash flowing NSR royalty on Caserones copper mine in ChileAcquisition raises the effective NSR held by the Company on Caserones to 0.473%Lundin Mining has recently announced its intention to acquire a 51% stake in Caserones Acquisition undertaken in combination with existing joint royalty holdersFrederick Bell, CEO of Elemental Altus, commented:\"We are very pleased to increase our royalty exposure to the Caserones copper mine in Chile following the Lundin Mining announcement to acquire majority ownership. The mine continues to be a cornerstone revenue generating asset in our portfolio and we believe there is significant exploration potential to be unlocked in the district, as highlighted by NGEX Minerals' exploration results immediately to the south.\"Terms of the AcquisitionThe 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 1.56 new shares in SLM California for a total cash consideration of US$2,598,802. The acquisition is in addition to the purchase of 1.29 shares announced on March 9, 2023 and increases the shareholding of the Company in SLM California to 24.35%. The Company's effective...