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Elemental Royalties Announces Gold Stream Acquisition, Concurrent Equity Financing and 2022 Guidance
Recommendation to REJECT the Hostile Bid is Further Reinforced HIGHLIGHTS Gold stream acq...
About this update from Elemental Royalty Corporation
[{"type":"text","content":"Elemental Royalties Announces Gold Stream Acquisition, Concurrent Equity Financing and 2022 GuidanceRecommendation to REJECT the Hostile Bid is Further ReinforcedHIGHLIGHTSGold stream acquisition delivers immediate cash flow and uncapped long-term revenue potential from a Canadian mine with a long operating history and a track record of exploration successMinimum gold deliveries to Elemental set at 1,200 ounces per year for the first three yearsFinancing, mostly with La Mancha, a new strategic investor, is at a 14% premium to the Hostile Bid12022 guidance is an increase of between 54% and 81% in gold equivalent ounces compared with 2021 preliminary sales. The preliminary outlook is for further material growth in 2023Seventh producing asset for Elemental, uniquely diversified cash flow amongst royalty peersVancouver, British Columbia--(Newsfile Corp. - March 17, 2022) - Elemental Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) (\"Elemental\" or \"the Company\") today announced that it has entered into a gold purchase and sale agreement (the \"Ming Gold Stream\") with Rambler Metals and Mining Canada Limited, a wholly owned subsidiary of Rambler Metals and Mining PLC (AIM: RMM) (\"Rambler\"), the owner of the Ming Copper-Gold Mine (the \"Ming Mine\") in Newfoundland and Labrador in Canada. Elemental also announced a concurrent equity financing (the \"Financing\") and 2022 guidance of 5,700 to 6,700 attributable gold equivalent ounces2 (\"GEOs\") at a 96% gross cash margin. \"The Ming Gold Stream, our first transaction with a Canadian mine, further increases the percentage and distribution of our exposure to Tier 1 mining jurisdictions while providing a uniquely diversified cash flow compared with peer royalty companies,\" said Frederick Bell, Elemental's Chief Executive Officer. \"The Financing, undertaken at a premium to the implied price under the Hostile Bid, continues to demonstrate our ability to fund growth and attract high-quality shareholders. As for our 2022 guidance, we welcome yet another year of very strong growth underpinned by seven producing assets, all of them contributing not just to long term value but to our cash flow this year.\" Ming Gold Stream DetailsUnder the terms of the Ming Gold Stream, in exchange for consideration of US$11 million, Elemental will receive 50% of payable gold production until Rambler has deli...