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Altus Strategies acquires cash-paying royalty on Chilean mine for $34.1m; secures $29m acquisition loan facility from La Mancha
StockMarketWire.com
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Mining royalty company Altus Strategies is to acquire a 0.418% net smelter return royalty (NSR) interest on the Caserones copper mine in Chile for a cash consideration of $34.1 million, to be part-financed by a $29 million loan facility from major shareholder La Mancha.
It expects the Caserones NSR to provide immediate and long-term cash flows of $3.2 million post-tax per year to Altus.
The NSR interest will be acquired from private vendors via a special purpose vehicle incorporated in Chile, with Altus Royalties and TSX-V and NYSE American-listed EMX Royalty Corporation having equal ownership of the SPV.
Chief executive Steven Poulton said: 'Our acquisition of a significant cash-paying royalty on a long-life copper mine in a tier-1 mining jurisdiction represents a landmark transaction for Altus. 'The Caserones mine is owned and operated by JX Nippon Mining & Metals Corporation of Japan and has an estimated 17 years of production remaining.'
Altus also announced it has entered into a $29 million acquisition loan facility agreement with a wholly owned subsidiary of La Mancha Fund.
Poulton added that La Mancha, the company's largest shareholder, recently established a $1.4 billion mining investment fund.
'The provision of the facility underscores La Mancha's commitment to the long-term growth of Altus and the quality of this acquisition.'
At 2:20pm: (LON:ALS) Altus Strategies Plc share price was 0p at 61.5p
Story provided by StockMarketWire.com
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