Business
Elemental Altus to Sell Diba Gold Project in Mali to Allied Gold, Operator of the Adjacent Flagship Sadiola Gold Mine for Cash & NSR Royalty
Vancouver, British Columbia--(Newsfile Corp. - July 20, 2023) - Elemental Altus Royalties Corp. (...
About this update from Elemental Royalty Corporation
[{"type":"text","content":"Elemental Altus to Sell Diba Gold Project in Mali to Allied Gold, Operator of the Adjacent Flagship Sadiola Gold Mine for Cash & NSR RoyaltyVancouver, British Columbia--(Newsfile Corp. - July 20, 2023) - Elemental Altus Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) (\"Elemental Altus\" or \"the Company\") announces that it has executed a Sale & Purchase Agreement (\"SPA\") with Allied Gold Corporation (\"Allied\") for the sale of the Company's 100% owned subsidiary Legend Mali (BVI) III Inc. which indirectly owns 100% of the Korali-Sud Small Scale Mining Licence (\"Korali Sud\") & Lakanfla Exploration Licence (\"Lakanfla\") (combined \"Diba\" or \"the Project\") in western Mali. As consideration, Allied will pay up to US$6 million in cash and grant a Net Smelter Return (\"NSR\") royalty of up to 3% on gold produced from the Project.Highlights:The Diba Project is located 15 kilometres south of the processing plant of Allied's flagship Sadiola Gold Mine (\"Sadiola\") and is adjacent to the Sadiola Large Scale Mining LicenceExisting shovel-ready resource at Korali-Sud Small Scale Mining Licence to be incorporated into Sadiola mine plan in 2024 and 2025, fast tracking royalty revenue and cash payments to Elemental AltusSale will add new near-term production royalty to the Company, comprising:3.0% on first 226,000 ounces of gold produced from within Korali-Sud2.0% on all future production in excess of defined 226,000 ounces from the ProjectAdditional consideration of up to US$6 million in cash, made up of: US$1 million on ClosingUS$1 million 90 days after commercial production with a long-stop date of 2025US$2 million within 90 days of production of 100,000 ounces from within Korali-SudUS$1 million within 90 days of production of 150,000 ounces from within Korali-SudUS$1 million within 90 days of production of 200,000 ounces from within Korali-SudDiba hosts a NI 43-101 compliant Preliminary Economic Assessment1 (\"PEA\") which confirmed a Mineral Resource Estimate of:312,000 ounces of gold with a grade of 1.24 g/t in the Indicated Category, including 199,000 ounces of gold in oxides with an average grade of 1.52 g/t; and362,000 ounces of gold at 0.88 g/t in the Inferred Category Allied plans to commence an infill drilling campaign to refine and expand the potential contribution of Diba to Sadiola's near term production prof...