TIDMALS
RNS Number : 6361L
Altus Strategies PLC
14 September 2021
Altus Strategies Plc / Index (EPIC): AIM (ALS) TSX-V (ALTS)
OTCQX (ALTUF) / Sector: Mining
14 September 2021
Altus Strategies Plc
("Altus" or the "Company")
First Royalty Income Payment Expected from Caserones Copper Mine
in Chile
Altus Strategies Plc (AIM: ALS, TSX-V: ALTS, OTCQX: ALTUF)
announces that it expects to receive its first royalty income
payment this month, from its effective 0.418% net smelter return
royalty ("NSR") interest on the Caserones copper mine in Chile. The
royalty receivable is projected to be in excess of US$1 million
(before tax) for the quarter ending 30 June 2021. Due to strong
copper prices during the period, it is believed this may represent
the highest quarterly royalty payment from Caserones since
production commenced in 2015.
Highlights:
-- First quarterly royalty income payment of over US$1M (pre-tax) expected this month
-- Payment of 0.418% NSR royalty in respect of Q2 at Caserones copper mine in Chile
-- Altus' interest in Caserones NSR was acquired in August 2021 for US$34.1 million
-- Mine in operation since 2015 with an estimated 17 years of production remaining
-- Additional royalty transactions under review globally with a focus on gold and copper
Steven Poulton, Chief Executive of Altus, commented:
"Having only recently closed the acquisition of the NSR on the
Caserones copper mine in Chile, we are delighted to already be
advising shareholders that the first royalty payment is expected
imminently. The payment will relate to the receivable royalty for
the second quarter of 2021 and, being our first royalty income,
will represent a landmark event for Altus. Given strong copper
prices during the period, the royalty is expected to be the highest
on record, since production commenced at Caserones in 2015.
"We expect demand for copper to remain strong in the years
ahead, as the global economy seeks to decarbonise in parallel with
continued infrastructure development, urbanisation and wealth
creation in emerging markets.
"Altus is currently assessing a number of other potential
royalty acquisitions globally and I look forward to updating
shareholders on these activities and the receipt of the Caserones
royalty income in due course."
Recent Acquisition of the Caserones NSR
Altus acquired the Caserones NSR interest in August 2021 for
US$34.1 million through a strategic 50:50 partnership with NYSE
American and TSX Venture exchanges-listed EMX Royalty Corporation
("EMX"). Altus and EMX created a Special Purpose Vehicle ("SPV"),
incorporated in Chile, that is owned jointly by Altus and EMX. The
SPV acquired an effective 0.836% NSR royalty interest for US$68.2
million (attributable as 0.418% to Altus and 0.418% to EMX), by
purchasing 43% of the issued and outstanding shares of Sociedad
Legal Minera California Una de la Sierra Peña Negra ("SLM
California"). SLM California holds a 1.944% NSR royalty on
Caserones. Altus principally financed the acquisition with a US$29
million acquisition loan facility agreement provided by its largest
shareholder La Mancha Fund SCSp (See Altus news releases dated 17
and 23 August 2021). Altus expects the Caserones NSR will provide
it with long-term cash flows, in line with its stated growth
strategy.
Caserones Royalty Background
Compania Minera Caserones ("CMC") and SLM California originally
staked the mineral claims that overlie the current Caserones
deposit. The 2.88% Caserones NSR was created in a 2009 agreement
between Minera Lumina Copper Chile S.A. as purchaser and CMC and
SLM California as the vendors of the Caserones claims. SLM
California and CMC own a 67.5% and 32.5% share of the 2.88% royalty
respectively, equating to an attributable 1.94% NSR interest for
SLM California. Under the agreement, the NSR interest will be
reduced to 2% and 1% if the London Metal Exchange ("LME") quoted
copper price falls below US$1.25 and US$1.00 per pound
respectively. The LME copper price is currently US$4.27/lb (as at
16 August 2021).
About the Caserones Mine
The Caserones mine is a large, open-pit porphyry
copper-molybdenum deposit, located within a 17,000 hectare land
package at an elevation of approximately 4,300m above sea level in
the borough of Tierra Amarilla, in the Atacama region of northern
Chile. The mine is approximately 15km from the border with
Argentina, 162km southeast of the city of Copiapó and 800km north
of the capital, Santiago.
Located at the southern end of the well documented Maricunga
mineral belt, the geology of Caserones comprises an Early-Miocene
porphyry system associated with a cluster of dacite porphyries and
breccias intruding Palaeozoic granitic, volcanic, and metamorphic
rocks. Caserones has a well-developed supergene enrichment profile
of oxide copper and secondary chalcocite that overlies hypogene
sulfide (chalcopyrite-molybdenite) mineralisation.
The mine is owned and operated by Minera Lumina Copper Chile
SpA, an indirect 100% owned subsidiary of JX Nippon Mining &
Metals Corporation of Japan. It produces copper and molybdenum
concentrates from a conventional crusher, mill and flotation plant,
as well as copper cathodes from a dump leach, solvent extraction
and electrowinning plant.
The mine has been in operation for five years, following a
capital investment of approximately US$4.2 billion. It has a
reported average waste to ore strip ratio of 0.47, and in 2020,
reportedly produced 104,917 tonnes of copper and 2,452 tonnes of
fine molybdenum in concentrates, as well as 22,056 tonnes of fine
copper in cathodes. Caserones has an estimated 17 years of
operation remaining under its current mine plan, along with
excellent exploration potential. In a news release dated 9 November
2020, JX Nippon announced plans for "stepping up exploration
efforts in areas around the mine" in an effort to expand production
and further extend the mine life.
Qualified Person
The technical disclosure in this regulatory announcement has
been approved by Steven Poulton, Chief Executive of Altus. A
graduate of the University of Southampton in Geology (Hons), he
also holds a Master's degree from the Camborne School of Mines
(Exeter University) in Mining Geology. He is a Fellow of the
Institute of Materials, Minerals and Mining and has over 20 years
of experience in mineral exploration and is a Qualified Person
under the AIM rules and NI 43-101.
For further information you are invited to visit the Company's
website www.altus-strategies.com or contact:
Altus Strategies Plc Tel: +44 (0) 1235 511 767
Steven Poulton, Chief Executive E-mail: info@altus-strategies.com
SP Angel (Nominated Adviser)
Richard Morrison / Adam Cowl Tel: +44 (0) 20 3470 0470
SP Angel (Broker)
Grant Barker / Richard Parlons Tel: +44 (0) 20 3470 0471
Shard Capital (Broker)
Isabella Pierre / Damon Heath Tel: +44 (0) 20 7186 9927
Yellow Jersey PR (Financial PR & IR) Tel: +44 (0) 20 3004 9512
Charles Goodwin / Henry Wilkinson E-mail: altus@yellowjerseypr.com
About Altus Strategies Plc
Altus Strategies (AIM: ALS, TSX-V: ALTS & OTCQX: ALTUF) is a
mining royalty company generating a diversified and precious metal
focused portfolio of assets. The Company's differentiated approach
of generating royalties on its own discoveries in Africa and
acquiring royalties globally through financings and acquisitions
with third parties, has attracted key institutional investor
backing. The Company engages constructively with all stakeholders,
working diligently to minimise its environmental impact and to
promote positive economic and social outcomes in the communities
where it operates. For further information, please visit
www.altus-strategies.com .
Cautionary Note Regarding Forward-Looking Statements
Certain information included in this announcement, including
information relating to future financial or operating performance
and other statements that express the expectations of the Directors
or estimates of future performance constitute "forward-looking
statements". These statements address future events and conditions
and, as such, involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the statements.
Such factors include, without limitation, the completion of planned
expenditures, the ability to complete exploration programmes on
schedule and the success of exploration programmes. Readers are
cautioned not to place undue reliance on the forward-looking
information, which speak only as of the date of this announcement
and the forward-looking statements contained in this announcement
are expressly qualified in their entirety by this cautionary
statement.
Where the Company expresses or implies an expectation or belief
as to future events or results, such expectation or belief is based
on assumptions made in good faith and believed to have a reasonable
basis. The forward-looking statements contained in this
announcement are made as at the date hereof and the Company assumes
no obligation to publicly update or revise any forward-looking
information or any forward-looking statements contained in any
other announcements whether as a result of new information, future
events or otherwise, except as required under applicable law or
regulations.
TSX Venture Exchange Disclaimer
Neither the TSX Venture Exchange nor the Investment Industry
Regulatory Organisation of Canada accepts responsibility for the
adequacy or accuracy of this release.
Market Abuse Regulation Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
****
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDEANNDFLAFEFA
(END) Dow Jones Newswires
September 14, 2021 02:00 ET (06:00 GMT)
Altus Strategies (LSE:ALS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Altus Strategies (LSE:ALS)
Historical Stock Chart
From Apr 2023 to Apr 2024