Business
Elemental Altus to Acquire Further Royalty Interest on Caserones Copper Mine
Vancouver, British Columbia--(Newsfile Corp. - March 9, 2023) - Elemental Altus Royalties Corp. (...
About this update from Elemental Royalty Corporation
[{"type":"text","content":"Elemental Altus to Acquire Further Royalty Interest on Caserones Copper MineVancouver, 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 HighlightsImmediate revenue from additional uncapped royalty on the producing Caserones copper mineAcquisition increases the effective royalty held by the Company to 0.443% NSRCaserones 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 jurisdictionsAcquisition 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 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 1.289% ownership in SLM California for cash consideration of US$2,004,302 pursuant to the Agreemen...