Elemental Altus Notes La Mancha Exercise of Anti-Dilution Right and Proposed Private Placement
Elemental Altus Royalties announces La Mancha's exercise of its Anti-Dilution right following the company's US$28 million royalty portfolio acquisition agreement. La Mancha will subscribe for 16,141,940 Common Shares at C$1.10 per share, generating proceeds of C$17.7 million. This follows the recently announced acquisition of a 50% ownership in 24 royalties from AlphaStream, which includes producing gold royalties on Bonikro, Ballarat, and South Kalgoorlie Operations. The portfolio acquisition is expected to generate approximately US$6 million additional revenue in 2025, increasing pro forma 2025 revenue by ~25% to US$31 million.
Elemental Altus Royalties annuncia l'esercizio del diritto di Anti-Dilution da parte di La Mancha in seguito all'accordo di acquisto del portafoglio di royalty dell'azienda, del valore di 28 milioni di dollari USA. La Mancha sottoscriverà 16.141.940 azioni ordinarie a C$1,10 per azione, generando proventi di C$17,7 milioni. Questo avviene dopo l'annuncio recente dell'acquisizione della proprietà del 50% su 24 royalty da AlphaStream, che include royalty d'oro produttive su Bonikro, Ballarat e South Kalgoorlie Operations. Si prevede che l'acquisizione del portafoglio genererà circa 6 milioni di dollari USA di ricavi aggiuntivi nel 2025, aumentando il fatturato pro forma del 2025 di circa il 25% a 31 milioni di dollari USA.
Elemental Altus Royalties anuncia el ejercicio del derecho de Anti-Dilution por parte de La Mancha tras el acuerdo de adquisición de su cartera de regalías por un valor de 28 millones de dólares estadounidenses. La Mancha suscribirá 16.141.940 acciones ordinarias a C$1,10 por acción, generando ingresos de C$17,7 millones. Esto sigue a la reciente adquisición del 50% de 24 regalías de AlphaStream, que incluye regalías de oro producidas en Bonikro, Ballarat y South Kalgoorlie Operations. Se espera que la adquisición de cartera genere aproximadamente 6 millones de dólares estadounidenses en ingresos adicionales en 2025, aumentando los ingresos pro forma de 2025 en aproximadamente un 25% a 31 millones de dólares estadounidenses.
Elemental Altus Royalties는 La Mancha가 2800만 달러의 로열티 포트폴리오 인수 계약에 따라 반희석 권리를 행사한다고 발표했습니다. La Mancha는 주당 C$1.10에 16,141,940주를 인수하여 C$17.7백만의 수익을 창출할 것입니다. 이는 최근에 발표된 AlphaStream으로부터 24개의 로열티 중 50% 소유권 인수에 이어지는 것입니다. 이 포트폴리오 인수는 2025년에 약 600만 달러의 추가 수익을 생성할 것으로 예상되며, 2025년 예상 수익을 약 25% 증가시켜 3100만 달러에 이를 것입니다.
Elemental Altus Royalties annonce l'exercice par La Mancha de son droit d'anti-dilution suite à l'accord d'acquisition de son portefeuille de redevances d'une valeur de 28 millions de dollars américains. La Mancha souscrira 16 141 940 actions ordinaires à 1,10 $CA par action, générant des revenus de 17,7 millions $CA. Cela fait suite à l'acquisition récemment annoncée de 50 % de 24 redevances auprès d'AlphaStream, qui comprend des redevances sur l'or produites sur Bonikro, Ballarat et South Kalgoorlie Operations. L'acquisition de portefeuille devrait générer environ 6 millions de dollars américains de revenus supplémentaires en 2025, augmentant le chiffre d'affaires pro forma 2025 d'environ 25 % pour atteindre 31 millions de dollars américains.
Elemental Altus Royalties gibt bekannt, dass La Mancha sein Anti-Dilution-Recht ausübt, nachdem das Unternehmen einen 28 Millionen US-Dollar schweren Vertrag zur Akquisition eines Royalty-Portfolios abgeschlossen hat. La Mancha wird 16.141.940 Stammaktien zu je C$1,10 zeichnen, was Einnahmen von C$17,7 Millionen generiert. Dies folgt auf die kürzlich angekündigte Übernahme von 50% an 24 Royalties von AlphaStream, zu denen auch produzierende Goldroyalties auf Bonikro, Ballarat und South Kalgoorlie Operations gehören. Die Portfoliotransaktion wird voraussichtlich etwa 6 Millionen US-Dollar zusätzliche Einnahmen im Jahr 2025 generieren, was den pro forma Umsatz 2025 um etwa 25% auf 31 Millionen US-Dollar erhöht.
- Additional C$17.7 million cash injection from La Mancha's share subscription
- Expected US$6 million additional revenue in 2025 from portfolio acquisition
- Projected 25% increase in pro forma 2025 revenue to US$31 million
- Material step up in free cash flow with no increase in management costs
- Share dilution through issuance of 16,141,940 new common shares
- Four-month transfer restriction period on newly issued shares
Vancouver, British Columbia--(Newsfile Corp. - October 23, 2024) - Elemental Altus Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) ("Elemental Altus" or the "Company") notes that following the announcement of an agreement to acquire a portfolio of royalties for US
Frederick Bell, CEO of Elemental Altus, commented: "Following announcement of the AlphaStream Transaction, the exercise of La Mancha's Anti-Dilution Right provides the Company with a further C
La Mancha Private Placement
Pursuant to the Investor Rights Agreement between an affiliate of La Mancha and the Company, La Mancha has confirmed its intention to exercise its Anti-dilution Right in totality and subscribe for 16,141,940 Common Shares, or such other number of Common Shares as will allow La Mancha to achieve the same percentage ownership as it holds in the Company prior to the completion of the Transaction, subject to completion of the Transaction. The subscription price for the Common Shares will be C
Shares issued to La Mancha pursuant to its Anti-dilution Right will be subject to restrictions on transfer for a period of four months plus a day pursuant to Canadian securities laws and TSX Venture Exchange requirements and are subject to certain conditions including the approval of the TSX Venture Exchange.
Background to the Transaction
On October 16, 2024, the Company announced that it had entered into a binding agreement (the "Agreement") to acquire an additional
The Portfolio acquisition provides immediate cash flow with approximately US
Related Party Transaction Disclosure
The Private Placement is a "related party transaction" for the purposes of TSX Venture Exchange Policy 5.9 - Protection of Minority Security Holders in Special Transactions as well as Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Part 5 of MI 61-101, which in certain circumstances may require shareholder approval for a related party transaction, does not apply to the Private Placement as Elemental Altus is obligated to, and is carrying out, the Private Placement substantially under the terms of a previous transaction, the terms of which were generally disclosed in a press release of Elemental Altus dated December 1, 2022, and such previous transaction was carried out in compliance with MI 61-101, in reliance on exemptions contained at Subsection 5.5(b) of MI 61-101 and Subsection 5.7(1)(a) of MI 61-101.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Frederick Bell
CEO and Director
Corporate & Media Inquiries:
Tel: +1 604 646 4527
Email: info@elementalaltus.com
Elemental Altus is a proud member of Discovery Group. For more information please visit: www.discoverygroup.ca or contact 604-646-4527.
TSX.V: ELE | OTCQX: ELEMF | ISIN: CA28619K1093 | CUSIP: 28619K109
1) Based on broker consensus revenue estimates for the Company in 2025
About Elemental Altus Royalties Corp.
Elemental Altus is an income generating precious metals royalty company with 11 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. The vision of Elemental Altus is to build a global gold royalty company, offering investors superior exposure to gold with reduced risk and a strong growth profile.
On behalf of Elemental Altus Royalties Corp.
Cautionary note regarding forward-looking statements
This news 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 closing of the Private Placement, the closing of the Acquisition, the impact of the Acquisition on the Company's royalty interests in Bonikro, Ballarat and SKO; cash flow and revenue forecasts, and future management costs. 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 Altus to control or predict, that may cause Elemental Altus' 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 impact of general business and economic conditions, the absence of control over the mining operations from which Elemental Altus will receive royalties, 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 or any future pandemics or global health emergencies; the possibility that future exploration, development or mining results will not be consistent with Elemental Altus' 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; the completion by La Mancha of its subscription as set out in the notice received from La Mancha; timing and certainty of TSX Venture Exchange approval and the closing of the Acquisition and the Private Placement; assumptions concerning the financial impact of the Acquisition; the relationship between the Company and its shareholders; and other related risks and uncertainties. For a discussion of important factors which could cause actual results to differ from forward-looking statements, refer to the annual information form of Elemental Altus for the year ended December 31, 2023. Elemental Altus undertakes no obligation to update forward-looking statements and information except as required by applicable law. Such forward-looking statements and information represents management's best judgment based on information currently available. No forward-looking statement or information 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/227530
FAQ
What is the value of La Mancha's investment in Elemental Altus (ELEMF) through the Anti-Dilution right exercise?
How much additional revenue is expected from Elemental Altus's (ELEMF) new royalty portfolio in 2025?
What is the projected total revenue for Elemental Altus (ELEMF) in 2025 after the portfolio acquisition?
