On November 9, 2023, Elemental Altus Royalties Corp. ("Elemental Altus" or "the Company") (TSXV: ELE) (OTCQX: ELEMF) announced the closing of the previously announced sale of the 'shovel-ready' Korali-Sud Small Scale Mining Licence and the highly prospective Lakanfla Exploration Licence (combined "Diba") in western Mali to Allied Gold Corporation ("Allied").
As announced by Elemental Altus on July 20, 2023, under the Share & Purchase Agreement the Company sold its 100% owned subsidiary Legend Mali (BVI) III Inc. which indirectly owns 100% of the Korali-Sud and Lakanfla licenses in western Mali. The consideration is comprised of a 3.0% NSR royalty on the first 226,000 ounces of production from the Diba deposit at Korali-Sud and a 2.0% NSR royalty on production thereafter from both Korali-Sud and Lakanfla.
Allied paid US$1 million in cash on closing and will pay a further US$1 million 90 days after commercial production or the earlier of December 31, 2025, if commercial production has not occurred. Allied will make a further payment of US$2 million within 90 days of production of 100,000 ounces from the Diba deposit and an additional US$1 million payment when cumulative production reaches each of 150,000 ounces and then 200,000 ounces from the Diba deposit within Korali-Sud.
Elemental Altus is a revenue generating precious metals royalty company with ten 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.
Erik Goldsilver and Adam Sherman of Gowling WLG advised Elemental Altus with respect to this sale.