EMX Announces Acquisition of a Royalty on the Chapi Copper Mine Property in Peru
EMX Royalty has entered into a Royalty Agreement with Minera Pampa de Cobre (MPC) for the Chapi copper mine in Peru. The agreement includes up to 2% Net Smelter Returns (NSR) on minerals from the 26,000-hectare property, plus up to 2% NSR on minerals processed at Chapi facilities from outside areas.
EMX paid US$3,000,000 for the first 1% NSR interest, with an option for MPC to sell an additional 1% for US$7,000,000 until February 28, 2025. The Property Royalty is perpetual, while the Facilities and AOI Royalties will be reduced by half in July 2034.
The Chapi Mine, historically producing 5,000-8,500 tonnes of copper annually during 2006-2012, is planned for restart by Quilla Resources, targeting 10,000 tonnes per annum of copper cathode production beginning in H1 2026. The mine is located in Peru's prominent copper-producing region, with grades previously mined at 0.59% - 1.04% copper.
EMX Royalty ha stipulato un accordo di royalty con Minera Pampa de Cobre (MPC) per la miniera di rame Chapi in Perù. L'accordo comprende fino al 2% di Ritorni Netti di Fonderia (NSR) sui minerali provenienti dalla proprietà di 26.000 ettari, oltre a fino al 2% di NSR sui minerali trattati presso gli impianti Chapi provenienti da aree esterne.
EMX ha pagato 3.000.000 USD per il primo interesse del 1% di NSR, con la possibilità per MPC di vendere un ulteriore 1% per 7.000.000 USD entro il 28 febbraio 2025. La royalty sulla proprietà è perpetua, mentre le royalty sugli impianti e sull'AOI saranno ridotte della metà a luglio 2034.
La miniera di Chapi, che storicamente ha prodotto tra 5.000 e 8.500 tonnellate di rame all'anno dal 2006 al 2012, è programmata per essere riavviata da Quilla Resources, mirando a una produzione di 10.000 tonnellate all'anno di catodi di rame a partire dal primo semestre del 2026. La miniera si trova nella rinomata regione di produzione di rame del Perù, con gradi precedentemente estratti tra lo 0,59% e l'1,04% di rame.
EMX Royalty ha firmado un acuerdo de regalías con Minera Pampa de Cobre (MPC) para la mina de cobre Chapi en Perú. El acuerdo incluye hasta el 2% de Retornos Netos de Fundición (NSR) sobre minerales de la propiedad de 26,000 hectáreas, además de hasta el 2% de NSR sobre minerales procesados en las instalaciones de Chapi provenientes de áreas externas.
EMX pagó 3,000,000 USD por el primer interés del 1% de NSR, con una opción para que MPC venda un 1% adicional por 7,000,000 USD hasta el 28 de febrero de 2025. La regalía de la propiedad es perpetua, mientras que las regalías de las instalaciones y del AOI se reducirán a la mitad en julio de 2034.
La mina de Chapi, que históricamente produjo entre 5,000 y 8,500 toneladas de cobre anualmente entre 2006 y 2012, está programada para reiniciarse por Quilla Resources, con el objetivo de producir 10,000 toneladas anuales de cátodos de cobre a partir del primer semestre de 2026. La mina está situada en la prominente región productora de cobre de Perú, con grados previamente extraídos entre el 0.59% y el 1.04% de cobre.
EMX 로열티 는 페루의 차피 구리 광산에 대해 미네라 팜파 데 코브레 (MPC)와 로열티 계약을 체결했습니다. 이 계약에는 26,000 헥타르의 토지에서 채굴된 광물에 대한 최대 2%의 순 제련 수익 (NSR)이 포함되며, 외부 지역에서 처리된 광물에 대한 최대 2%의 NSR도 포함됩니다.
EMX는 첫 번째 1% NSR 지분에 대해 3,000,000 USD를 지불했으며, MPC는 2025년 2월 28일까지 추가 1%를 7,000,000 USD에 판매할 수 있는 옵션이 있습니다. 자산 로열티는 영구적이며, 시설 및 AOI 로열티는 2034년 7월에 절반으로 줄어듭니다.
차피 광산은 2006년부터 2012년까지 연간 5,000~8,500톤의 구리를 생산했으며, 퀼라 리소스에 의해 2026년 상반기에 연간 10,000톤의 구리 양극 생산을 목표로 재개될 예정입니다. 이 광산은 페루의 주요 구리 생산 지역에 위치하고 있으며, 이전에 채굴된 구리의 품위는 0.59%에서 1.04% 사이입니다.
EMX Royalty a signé un accord de redevances avec Minera Pampa de Cobre (MPC) pour la mine de cuivre Chapi au Pérou. L'accord comprend jusqu'à 2 % de Retours Nets de Fonderie (NSR) sur les minéraux provenant de la propriété de 26 000 hectares, ainsi que jusqu'à 2 % de NSR sur les minéraux traités dans les installations de Chapi provenant de zones extérieures.
EMX a payé 3 000 000 USD pour le premier intérêt de 1 % de NSR, avec une option pour MPC de vendre un pourcentage supplémentaire de 1 % pour 7 000 000 USD jusqu'au 28 février 2025. La redevance sur la propriété est perpétuelle, tandis que les redevances sur les installations et l'AOI seront réduites de moitié en juillet 2034.
La mine de Chapi, qui a historiquement produit entre 5 000 et 8 500 tonnes de cuivre par an entre 2006 et 2012, est prévue pour redémarrage par Quilla Resources, visant une production de 10 000 tonnes par an de cathodes de cuivre à partir du premier semestre 2026. La mine est située dans la région productrice de cuivre de premier plan du Pérou, avec des teneurs précédemment extraites variant entre 0,59 % et 1,04 % de cuivre.
EMX Royalty hat einen Royalty-Vertrag mit Minera Pampa de Cobre (MPC) für die Chapi-Kupfermine in Peru abgeschlossen. Der Vertrag umfasst bis zu 2% Nettoschmelzerträge (NSR) auf Mineralien aus dem 26.000 Hektar großen Gebiet sowie bis zu 2% NSR auf Mineralien, die in den Chapi-Anlagen aus externen Gebieten verarbeitet werden.
EMX zahlte 3.000.000 USD für das erste 1% NSR-Interesse, mit der Option für MPC, bis zum 28. Februar 2025 ein zusätzliches 1% für 7.000.000 USD zu verkaufen. Die Grundstücksroyalty ist dauerhaft, während die Royalties für die Anlagen und das AOI im Juli 2034 um die Hälfte reduziert werden.
Die Chapi-Mine, die in der Zeit von 2006 bis 2012 jährlich zwischen 5.000 und 8.500 Tonnen Kupfer produzierte, ist für einen Neuanfang durch Quilla Resources geplant, mit dem Ziel, ab dem ersten Halbjahr 2026 jährlich 10.000 Tonnen Kupferkathoden zu produzieren. Die Mine befindet sich in einer der wichtigsten Kupferproduktionsregionen Perus, wobei die zuvor abgebauten Gehalte zwischen 0,59% und 1,04% Kupfer lagen.
- Acquisition of perpetual royalty rights in a major copper-producing region
- Initial 1% NSR secured for US$3M with option for additional 1%
- Planned production restart targeting 10,000 tonnes annual copper output
- Property includes extensive drill database with expansion potential
- Strategic location near world's largest producing porphyry copper deposits
- Additional US$7M required for full 2% NSR acquisition
- Production restart contingent on drilling, testing, and permitting
- Historical operations halted due to copper prices and operational challenges
- Facilities and AOI royalties will be reduced by half in 2034
Insights
The acquisition of the Chapi copper mine royalty represents a strategic expansion of EMX's portfolio with a
The historical production of 5,000-8,500 tonnes of copper annually, combined with grades of
The strategic location within Peru's prolific copper belt, proximity to world-class deposits and the experienced management team led by Victor Gobitz substantially de-risk the project. The secured royalty structure and intercreditor agreement with Hartree Partners provide additional investment protection.
The Chapi property's geological setting within the Paleocene-Eocene Cu-Mo porphyry belt of Southern Peru is particularly compelling. The sandstone-hosted copper mineralized mantos with secondary enrichment present multiple value creation opportunities through both open-pit and underground potential.
The presence of porphyritic intrusions with known copper mineralization, coupled with but promising gold assays, suggests significant exploration upside beyond the historical resource base. The additional prospects at Pampa Negra, Candelaria, San Jose and Justicia further enhance the property's potential value proposition.
The extensive drill database and existing resource definition provide a solid foundation for near-term production restart, while the large 26,000-hectare land package offers substantial exploration potential. The area of interest royalty structure ensures EMX benefits from any new discoveries within the prospective two-kilometer radius.
Vancouver, British Columbia--(Newsfile Corp. - January 6, 2025) - EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (the "Company" or "EMX") is pleased to announce that the Company has entered into a Royalty Agreement (the "Agreement") with Minera Pampa de Cobre S.A.C. ("MPC"), a Peruvian company focused on restarting production at the Chapi copper mine located south of the city of Arequipa in Peru (the "Chapi Mine"). MPC is owned indirectly by a privately held Canadian company, Quilla Resources Inc. ("Quilla").
Pursuant to the terms of the Agreement, EMX will acquire a royalty interest of up to
EMX's right to receive royalty payments will be secured by a guarantee from Quilla, and by various personal property and real property security instruments in Peru. EMX's security interests will be subordinated to those of Hartree Partners, LP ("Hartree"), acting as the first lien lender to MPC and Quilla, in accordance with an intercreditor agreement entered into between EMX, Hartree, MPC, and Quilla.
EMX is excited by the addition of a high-quality copper royalty to the portfolio that has excellent upside development and exploration potential located in the prolific Paleocene-Eocene copper-molybdenum porphyry belt of Southern Peru.
Background on Quilla
Quilla is a newly formed Canadian company that recently (December 2024) acquired MPC from Nexa Resources S.A. (NYSE: NEXA), one of the world's top zinc producers with operations in Brazil and Peru. Quilla was founded by Victor Gobitz and a select group of shareholders looking to rapidly build an intermediate-sized base metals company. Mr. Gobitz is a senior mining executive who will be transitioning from his role as President and General Manager for the world class Antamina mine in Peru to lead Quilla. Mr. Gobitz has worked with a number of companies in Peru over recent years including Rio Alto Mining, Compañía Minera Milpo (now Nexa Resources Peru), and Compañía de Minas Buenaventura, and from his deep knowledge of the mining industry in Peru has assembled an experienced and accomplished team to quickly execute on Quilla's plans to restart copper production at Chapi.
Background on the Chapi Mine1
The Chapi Mine is located in southern Peru's Moquegua and Arequipa Departments at an elevation of approximately 2,750 meters, and has ready access approximately 50 kilometers south-southeast from the city of Arequipa. Historical, small-scale copper production, which is poorly documented, occurred intermittently from the 1930s through the early 1980s. Subsequently, between 2006 and 2012 the Chapi Mine produced approximately 5,000 to 8,500 tonnes per annum, initially of copper sulphates from open-pit and underground mining and heap leaching, and later copper cathodes from open-pit mining, heap leaching, and SX-EW (solvent extraction-electrowinning) processing. The grades mined during 2006-2012 were reported as
The historical Chapi Mine is comprised of two principal open pits, underground workings, a crushing and grinding circuit, heap leach pads, a solvent extraction plant, an electrowinning copper cathode plant, and related infrastructure including mine camp, office facilities, water supply, and power. Since 2012, Chapi has been maintained under care and maintenance with the principal permits for mining operations remaining in place under a temporary suspension.
Chapi Geology and Exploration Upside2
The deposits at Chapi are comprised of sandstone-hosted copper mineralized mantos, partially oxidized and secondarily enriched, that are related to a series of porphyry intrusions. The Chapi Mine lies between, and directly along trend from, some of the world's largest producing porphyry copper deposits, including Cerro Verde and the Cuajone-Quellaveco-Toquepala cluster (refer to inset in Figure 1). All of these deposits and districts, as well as others, comprise the Paleocene-Eocene Cu-Mo porphyry belt of Southern Peru, and contribute to making Peru the second ranked copper producer in the world.
The ~26,000 hectare land package owned by MPC, and subject to EMX's royalty interests, includes historical resources based on an extensive drill database that delineates the well-mineralized, leachable manto horizons at Chapi, which are open for potential resource expansion from both open pit and underground exploitation. Porphyritic intrusions, intimately associated with the mineralized mantos, have low-grade copper mineralization in sericitic-altered zones, but also have exploration potential for higher-grade copper mineralization within the porphyry system. Further, although gold assays in the drill database are limited in number, those that are present suggest that gold, not recovered by the historical mining operations, might have wider exploration potential.
Additional, potentially leachable copper-oxide and chalcocite drill-defined mineralization, as well as primary sulphide mineralization, occurs at the Pampa Negra and Candelaria projects, related to porphyritic intrusions and associated supergene manto horizons that are covered by the Property Royalty or by the AOI Royalty. Furthermore, early-stage exploration targets at San Jose (with drilling), and Justicia prospect areas (no drilling) show evidence of porphyry-style mineralization with some evidence for oxidation of primary sulphides. These deposits provide upside potential for processing at the existing Chapi plant subject to further drilling, engineering, and permitting.
Chapi Restart Plans
Quilla's near-term plan is to restart Chapi Mine operations utilizing the SX-EW process circuit which is designed to produce a nominal 10,000 tonnes per annum of copper cathode, with the option to potentially increase capacity in the future. Initially, the restart plan is contingent on additional drilling and metallurgical test work, updated resource and reserve modelling, rehabilitation of the mining and leach-processing infrastructure, and updated environmental and other permits. Quilla and MPC have raised the necessary capital to complete the Chapi restart program, and anticipate initial production in H1 2026.
Comments on Mines and Districts in the Region. The mines and districts in the region of the Chapi Mine property, which include Cerro Verde and the Cuajone-Quellaveco-Toquepala cluster, provide geological context for EMX's Chapi royalty property. However, this is not necessarily indicative that the Chapi royalty property hosts similar styles, grades, or tonnages of mineralization.
Comments on Chapi Background, Geology, and Exploration Upside. EMX has not verified the historical information and data from the previous Chapi operators, but believes this information and data to be reliable and relevant. Updated information and data will result from Quilla's restart program technical work.
Dean D. Turner, CPG, a Qualified Person as defined by National Instrument 43-101 and consultant to the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
About EMX - EMX is a precious and base metals royalty company. EMX's investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company's common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol "EMX". Please see www.EMXroyalty.com for more information.
For further information contact:
David M. Cole
President and CEO
Phone: (303) 973-8585
Dave@EMXroyalty.com
Isabel Belger
Investor Relations
Phone: +49 178 4909039
IBelger@EMXroyalty.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward-Looking Statements
This news release may contain "forward looking statements" that reflect the Company's current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as "estimate," "intend," "expect," "anticipate," "will", "believe", "potential" and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company's future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company's MD&A for the quarter ended September 30, 2024 (the "MD&A"), and the most recently filed Annual Information Form ("AIF") for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedarplus.ca and on the SEC's EDGAR website at www.sec.gov.
Figure 1. EMX's Chapi royalty property and AOI, southeast Peru.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1508/236195_6341df32242d9a93_002full.jpg
1 Background and production information taken from internal, proprietary reports and documents by historical operators, as well as "Memoria Anual" reports filed with the Peruvian government by historical operator Compañia Minera Milpo S.A.A.
2 Geology and exploration upside taken from EMX's due diligence field review and review of internal, proprietary reports and documents from historical operators, as well as "Memoria Anual" reports filed with the Peruvian government by historical operator Compañia Minera Milpo S.A.A.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/236195
FAQ
What are the terms of EMX's royalty agreement for the Chapi copper mine?
When is the Chapi copper mine expected to restart production under EMX's royalty agreement?
What was the historical production at the Chapi copper mine?
How large is the Chapi copper mine property covered by EMX's royalty?
What are the key terms of EMX's Facilities and AOI royalties for the Chapi mine?
