VANCOUVER, BC, Feb. 9, 2021 /CNW/ - Elemental Royalties Corp.
("Elemental" or "the Company") (TSXV: ELE) (OTCQX:
ELEMF), a gold-focused royalty company providing investors with
exposure to a growing portfolio of producing royalties, is pleased
to announce that it has completed the acquisition of a portfolio of
precious metal royalties from a wholly owned subsidiary of South32
Limited ("South32").
"The acquisition is expected to provide significant
additional cash flow to the Company" said Frederick Bell, CEO of Elemental. "Targeting
first gold in Q2 2021, production from the Karlawinda mine is
forecast to nearly double Elemental's royalty revenue, with
continuing organic revenue growth in 2022 and 2023."
As consideration for the transaction, Elemental made a cash
payment of US$40 million (the
"Cash Payment") and issued 13,065,100 common shares to
South32, representing approximately 19% of the issued and
outstanding common shares of the Company.
The Cash Payment was funded in part through the proceeds of the
previously announced "bought deal" private placement of an
aggregate of 10,748,132 subscription receipts of the Company (the
"Subscription Receipts") at a price of C$1.50 per Subscription Receipt. Canaccord
Genuity Corp acted as lead underwriter for the Offering, on behalf
of a syndicate of underwriters including Haywood Securities Inc.,
Scotia Capital Inc. and Sprott Capital Partners LP. In connection
with the transaction, Elemental also entered into an amended and
restated credit agreement (the "Sprott Facility") with
Sprott Private Resource Lending II (Collector), LP
("Sprott"). In connection with the Sprott Facility,
Elemental issued 653,255 common shares to Sprott.
The escrow release conditions for the financing have been
satisfied and the Subscription Receipts have converted into
10,748,132 common shares of Elemental ("Common Shares"). The
Common Shares issued in exchange for the Subscription Receipts are
subject to a four-month statutory hold period expiring April 16, 2021. Following conversion of the
Subscription Receipts, Elemental has 68,991,221 Common Shares
outstanding.
On behalf of Elemental Royalties Corp.
Frederick Bell
CEO and
Director
For further information about the Company or this news release,
please visit our website at www.elementalroyalties.com or by email
at info@elementalroyalties.com.
Elemental is a proud member of Discovery Group.
Neither the TSX-V nor its Regulation Service Provider (as
that term is defined in the policies of the TSX-V.) accepts
responsibility for the adequacy or accuracy of this press
release.
About Elemental Royalties
Elemental is a gold-focused royalty company listed on the TSX-V
in Canada and provides investors
with lower risk precious metals exposure through a portfolio of
nine high-quality royalties. This enables investors to benefit from
ongoing royalty revenue, future exploration upside and low
operating costs. Elemental's experienced team seeks to secure
royalties in advanced precious metals projects, run by established
operators, from its pipeline of identified opportunities.
Cautionary note regarding forward-looking statements
This release contains certain "forward looking statements" and
certain "forward-looking information" as defined under applicable
Canadian securities laws. Forward-looking statements and
information can generally be identified by the use of
forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology.
Forward-looking statements and information include, but are not
limited to, statements with respect to the future growth and
development of the Company. Forward-looking statements and
information are based on forecasts of future results, estimates of
amounts not yet determinable and assumptions that, while believed
by management to be reasonable, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Forward-looking statements and information are
subject to various known and unknown risks and uncertainties, many
of which are beyond the ability of Elemental to control or predict,
that may cause Elemental's actual results, performance or
achievements to be materially different from those expressed or
implied thereby, and are developed based on assumptions about such
risks, uncertainties and other factors set out herein, including
but not limited to: the requirement for regulatory approvals and
third party consents, the impact of general business and economic
conditions, the absence of control over the mining operations from
which Elemental will receive royalties, including risks related to
international operations, government relations and environmental
regulation, the inherent risks involved in the exploration and
development of mineral properties; the uncertainties involved in
interpreting exploration data; the potential for delays in
exploration or development activities; the geology, grade and
continuity of mineral deposits; the impact of the COVID-19
pandemic; the possibility that future exploration, development or
mining results will not be consistent with Elemental's
expectations; accidents, equipment breakdowns, title matters,
labour disputes or other unanticipated difficulties or
interruptions in operations; fluctuating metal prices;
unanticipated costs and expenses; uncertainties relating to the
availability and costs of financing needed in the future; the
inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, commodity price
fluctuations; currency fluctuations; regulatory restrictions,
including environmental regulatory restrictions; liability,
competition, loss of key employees and other related risks and
uncertainties. Elemental undertakes no obligation to update
forward-looking information except as required by applicable law.
Such forward-looking information represents management's best
judgment based on information currently available. No
forward-looking statement can be guaranteed and actual future
results may vary materially. Accordingly, readers are advised not
to place undue reliance on forward-looking statements or
information.
SOURCE Elemental Royalties Corp.