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Elemental Altus Notes Development Approval of Diba Project by Allied Gold
Vancouver, British Columbia--(Newsfile Corp. - September 18, 2023) - Elemental Altus Royalties Co...
About this update from Elemental Royalty Corporation
[{"type":"text","content":"Elemental Altus Notes Development Approval of Diba Project by Allied GoldVancouver, British Columbia--(Newsfile Corp. - September 18, 2023) - Elemental Altus Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) (\"Elemental Altus\" or \"the Company\") notes that Allied Gold Corporation (\"Allied Gold\") has approved commencement of development work at the Diba gold project (\"Diba\"), which is contiguous with their flagship Sadiola gold mine in western Mali. Production at Diba is expected to commence in the first half of 2024 and the Company holds an initial 3% Net Smelter Return (\"NSR\") royalty, along with additional milestone payments.HighlightsNew producing royalty expected in first half of 2024 from Diba gold project in western Mali Diba is located approximately 15km from Allied Gold's flagship Sadiola Gold mineAllied Gold has approved US$12 million of capital expenditure to fast-track development at DibaWill represent material revenue growth with over 6,000 attributable Gold Equivalent Ounces (\"GEOs\") forecast over 2024-2025Elemental Altus holds a 3% NSR royalty on the first 226,000 ounces produced from a defined resource and a 2% NSR uncapped royalty on all future production from 107km2 project areaThe Company will also receive up to US$6 million in milestone payments that are anticipated to be paid in parallel with Diba royalty revenueIn July 2023, the Company announced the sale of Diba to Allied Gold which is still subject to closeExcellent potential for further expansion from existing resources and future exploration Frederick Bell, CEO of Elemental Altus, commented:\"We welcome Allied Gold's announcement that our recently sold Diba project, which is contiguous with their flagship 10 million ounce Sadiola mine, is being fast-tracked in to production in H1 2024. The combination of royalty revenue and milestone payments from Diba will contribute meaningfully to our revenue growth, with over 6,000 GEOs and up to $6 million in cash payments over 2024 and 2025. There remains a material resource across the project and significant exploration upside that we believe will deliver considerable future value to Elemental Altus shareholders.\"Diba Gold Project, Western MaliOn September 11, 2023, Allied Gold announced that it commenced trading on the Toronto Stock Exchange under the ticker AAUC, having completed a US$267 million financing....