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Star Royalties to Acquire 2% NSR Royalty on Elk Gold Mine in BC, Canada
(TheNewswire) All amounts are in U.S. dollars unless otherwise indicated. ...
About this update from Star Royalties Ltd
[{"type":"text","content":"Star Royalties to Acquire 2% NSR Royalty on Elk Gold Mine in BC, Canada\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n All amounts are in U.S. dollars unless otherwise\nindicated.\n \n \n \n \n SEPTEMBER 28, 2021 -\n \n \n TheNewswire -\n \n \n TORONTO, ON - Star Royalties\nLtd.\n \n \n (the “\n \n \n Company\n \n \n ” or\n“\n \n \n Star Royalties\n \n \n ”) (TSXV:STRR\n \n \n ) (\n \n \n OTC:STRFF) is pleased to announce the execution of a\ndefinitive royalty purchase agreement (the “\n \n \n Transaction\n \n \n ”) with\nAlmadex Minerals Ltd. (TSXV: DEX) (“\n \n \n Almadex\n \n \n ”) to\nacquire an existing 2% net smelter return royalty (the “\n \n \n Royalty\n \n \n ”) on the\nElk Gold Mine (“\n \n \n Elk\nGold\n \n \n ”) located in BC, Canada and owned and\noperated by Gold Mountain Mining Corp. (TSXV: GMTN, OTCQB: GMTNF, FRA:\n5XFA) (“\n \n \n Gold\nMountain\n \n \n ”) for total consideration of\n$10,630,000.  The Transaction is expected to close on or about\nSeptember 28, 2021 (the “\n \n \n Closing Date\n \n \n ”).\n \n \n \n \n Transaction and Asset\nHighlights\n \n \n \n \n \n \n - Imminent revenue:\n \n \n Gold Mountain recently commenced operations at Elk Gold and\nexpects first revenue generation in Q4 2021. Royalty revenue is\nexpected to increase and average $2 million per annum post-year 3\nbased on prevailing gold prices.\n \n \n \n \n - Value accretion and asset\ndiversification:\n \n \n Transaction is accretive on net\nasset value and per-share metrics before the consideration of Elk\nGold’s expansion and exploration upside.\n \n \n \n \n - World-class\njurisdiction:\n \n \n Elk Gold is located in\nmining-friendly south-central British Columbia, Canada.\n \n \n \n \n - Long life and strong\nmargins:\n \n \n Gold Mountain’s updated preliminary\neconomic assessment (“\n \n \n PEA\n \n \n ”) from May 2021 highlights an 11-year\ncombined open pit and underground operation with life-of-mine all-in\nsustaining costs of $554 per ounce.\n \n \n \n \n - Reputable partners:\n \n \n Gold Mountain has secured a fixed-price mining services\ncontract with Nhwelmen-Lake LP (“\n \n \n Nhwelmen-Lake\n \n \n ”) and\nsigned an ore purchase agreement with New Gold Inc. (TSX,...