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Elemental Altus Partners Egyptian Gold Assets for Cash and Royalties
Vancouver, British Columbia--(Newsfile Corp. - August 28, 2023) - Elemental Altus Royalties Corp....
About this update from Elemental Royalty Corporation
[{"type":"text","content":"Elemental Altus Partners Egyptian Gold Assets for Cash and RoyaltiesVancouver, British Columbia--(Newsfile Corp. - August 28, 2023) - Elemental Altus Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) (\"Elemental Altus\" or the \"Company\") announces the signing and completion of a subscription agreement (\"Agreement\") with In2Metals Explorer S.à r.l. (\"In2Metals\") in respect of Akh Gold Ltd. (\"Akh Gold\"). In2Metals is beneficially owned by the Egyptian Sawiris family who, through the Agreement, is underlining its commitment to invest directly and proactively into the development of Egypt's mining sector. In2metals is an affiliate of the Company's cornerstone shareholder La Mancha Investments S.à r.l. (\"La Mancha\").Under the Agreement In2Metals has acquired an 80.1% interest in and assumed management control of the Company's subsidiary Akh Gold, through the subscription for US$10 million in new Akh Gold shares (\"Subscription\") over a four year period (the \"Transaction\"). The proceeds from the Subscription will be applied to fund exploration of Akh Gold's projects in Egypt. Elemental Altus will receive US$1.5 million in cash pursuant to the Agreement, a 1.5% Net Smelter Return (\"NSR\") royalty across Akh Gold's current projects in Egypt and will retain a 19.9% equity interest in Akh Gold upon completion of the US$10 million Subscription, with pro rata co-funding rights thereafter.Highlights:New royalties created in Egypt with US$10 million to be invested by In2Metals in Akh Gold Elemental Altus to receive:1.5% NSR royalty on current licences and licence applications totalling 1,914km2Cash of US$1.1 million on closing and US$0.4 million on or before August 30, 2024Milestone payment of US$5 million on definition of a 3 million ounce resource Rights to co-fund its 19.9% equity interest in Akh Gold following the SubscriptionIn2Metals selected following a competitive process with multiple potential counterparties In2Metals is led by Gérard de Hert, the former SVP of Exploration for Endeavour Mining and is beneficially owned by the Sawiris familyThe Sawiris family have a distinguished track record in telecoms, media, real estate and mining in Egypt and across AfricaThrough Akh Gold, Elemental Altus established a portfolio of prospective targets in Egypt:Channel sampling at the Wadi Dubur project includes 6.80 g/t Au...