La Mancha-backed Altus acquires Chile copper royalty, forms partnership with EMX
Aim- and TSX-V-listed Altus Strategies will acquire a significant cash paying royalty on a long-life copper mine in Chile, in a transaction which CEO Steven Poulton describes as a “landmark” for the company.
Altus will acquire an effective 0.418% net smelter royalty (NSR) interest on the producing Caserones copper mine of JX Nippon, in the Atacama region of northern Chile. The NSR will provide the company with immediate and long-term cash flows.
"Following this acquisition, Altus will receive significant quarterly royalty income and will have long- term exposure to copper. We expect the 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," said Poulton.
Altus will pay $34.1-million for the NSR interest in cash from private vendors through a special purpose vehicle (SPV) incorporated in Chile. Altus Royalties, a subsidiary of Altus, and TSX-V- and NYSE American-listed EMX Royalty have equal ownership of the SPV.
Of the total consideration, $3.4-million will be paid in cash and the balance will be financed by a $29-million loan facility from major shareholder La Mancha, which recently established a $1.4-billion mining investment fund.
“Our loan facility provides Altus with access to immediate capital, on favourable commercial terms, allowing it to move fast and complete the acquisition,” said La Mancha CEO and Altus director Karim Nasr.
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