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Elemental Altus Divests Copper Subsidiary, Generates 16 New Royalties

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Elemental Altus Divests Copper Subsidiary, Generates 16 New Royalties

 

 

 

 

 

Elemental Altus Royalties Corp. (TSX-V: ELE) (OTCQX: ELEMF) announces the completion of the vend-out of its 100% owned Morocco-focused copper subsidiary Aterian Resources Ltd to Eastinco Mining and Exploration plc. Aterian owns a 100% interest in 15 prospective projects primarily targeting copper and silver covering 762km2.

 

Completion of the Transaction follows the satisfaction of certain conditions precedent, including admission to trading of the entire issued share capital of Eastinco to the Official List of the FCA (Standard Segment) and to trading on the London Stock Exchange’s Main Market for listed securities.

 

In consideration, Elemental Altus has received:

  • a 2.50% net smelter return royalty over each of the 15 Projects, with Eastinco retaining certain buyback rights of up to 1.0% of each NSR royalty for US$0.5 million per 0.5%
  • a 0.5% NSR royalty over Eastinco’s Musasa tantalum operation in Rwanda
  • 241,173,523 shares in Eastinco representing 25% of the issued share capital of Eastinco valued at approximately £2,500,000 (approximately US$2,874,038) on Admission. The shares are subject to a customary 12-month lock in period and a further 12-month orderly market provision
  • five-year warrants to purchase up to an additional 10% of the enlarged share capital of Eastinco, with 50% of the warrants having an exercise price of £0.01 per share and the balance having an exercise price of £0.02 per share
  • Eastinco will reimburse the Company up to £250,000 (approximately US$287,404) in cash in respect of certain historic exploration expenditures

 

Under the terms of the Transaction, Elemental Altus’ Executive VP of Royalty Investments, Alister Hume, has been appointed as a Non-Executive Director of Eastinco.

 

Eastinco anticipates changing its name to Aterian plc, as part of its strategy to acquire and develop new critical metal resources and strengthen its existing asset base whilst supporting ethical and sustainable supply chains.

 

Frederick Bell, CEO of Elemental Altus, commented:

“We are delighted to complete this royalty generation transaction on a portfolio of copper assets in Morocco as well as tantalum in Rwanda. Elemental Altus shareholders will also retain exposure to the projects, through a 25% equity interest in Eastinco. This transaction demonstrates the value of our low cost and high impact royalty generation activities.”

 

About Elemental Altus Royalties Corp.

Elemental Altus is an income generating precious metals royalty company with 11 producing royalties and a diversified portfolio of pre-production and discovery stage assets. The Company is focused on acquiring uncapped royalties and streams over producing, or near-producing, mines operated by established counterparties, as well as generating royalties on new discoveries. The vision of Elemental Altus is to build a global gold royalty company, offering investors superior exposure to gold with reduced risk and a strong growth profile.

 

Posted October 25, 2022

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