EMX Options its Queensland Gold Projects to Mila Resources
EMX Royalty has signed an exploration and option agreement with Mila Resources PLC for its Yarrol, Mt Steadman and Queensland Gold projects. Under the agreement, EMX will receive AUD $25,000, 16 million Mila purchase warrants, and work commitments of AUD$450,000 in the first year. Upon option exercise, EMX will receive additional benefits including £110,000 in Mila shares, a 2.5% NSR royalty, and advance royalty payments starting at 20 ounces of gold. The projects, located in the Tasman Orogenic Zone of eastern Australia, contain historically defined gold resources and historic mining sites. Recent drilling at Yarrol yielded notable intersections including 17.8 meters averaging 4.01 g/t gold.
EMX Royalty ha firmato un accordo di esplorazione e opzione con Mila Resources PLC per i suoi progetti Yarrol, Mt Steadman e Queensland Gold. In base all'accordo, EMX riceverà 25.000 AUD, 16 milioni di warrant di acquisto Mila e impegni di lavoro per un totale di 450.000 AUD nel primo anno. Al momento dell'esercizio dell'opzione, EMX riceverà ulteriori benefici, tra cui 110.000 £ in azioni Mila, una royalty NSR del 2,5% e pagamenti anticipati di royalty a partire da 20 once d'oro. I progetti, situati nella Zona Orogenica di Tasman nell'Australia orientale, contengono risorse aurifere storicamente definite e siti minerari storici. Recenti perforazioni a Yarrol hanno evidenziato notevoli intersezioni, tra cui 17,8 metri con una media di 4,01 g/t d'oro.
EMX Royalty ha firmado un acuerdo de exploración y opción con Mila Resources PLC para sus proyectos de oro Yarrol, Mt Steadman y Queensland. Según el acuerdo, EMX recibirá 25,000 AUD, 16 millones de warrants de compra de Mila y compromisos de trabajo por un total de 450,000 AUD en el primer año. Al ejercer la opción, EMX recibirá beneficios adicionales, que incluyen 110,000 £ en acciones de Mila, una regalía NSR del 2.5% y pagos anticipados de regalías que comenzarán en 20 onzas de oro. Los proyectos, ubicados en la Zona Orogénica de Tasman en el este de Australia, contienen recursos de oro históricamente definidos y sitios mineros históricos. Perforaciones recientes en Yarrol han producido intersecciones notables, incluyendo 17.8 metros con un promedio de 4.01 g/t de oro.
EMX 로열티는 Mila Resources PLC와 Yarrol, Mt Steadman 및 Queensland Gold 프로젝트에 대한 탐사 및 옵션 계약을 체결했습니다. 계약에 따라 EMX는 25,000 AUD, 1,600만 Mila 구매 워런트, 그리고 첫 해에 450,000 AUD의 작업 약정을 받게 됩니다. 옵션을 행사할 경우, EMX는 Mila 주식 110,000 £, 2.5% NSR 로열티 및 20온스 금으로 시작하는 선급 로열티 지급 등의 추가 혜택을 수령하게 됩니다. 이 프로젝트들은 호주 동부의 태즈먼 오로제닉 존에 위치하며, 역사적으로 정의된 금 자원과 역사적인 채굴 사이트를 포함하고 있습니다. 최근에 Yarrol에서 실시된 굴착은 17.8미터에 평균 4.01 g/t의 금을 포함하는 주목할 만한 교차점을 기록했습니다.
EMX Royalty a signé un accord d'exploration et d'option avec Mila Resources PLC pour ses projets Yarrol, Mt Steadman et Queensland Gold. En vertu de l'accord, EMX recevra 25 000 AUD, 16 millions de bons de souscription d'actions Mila et des engagements de travail de 450 000 AUD la première année. Lors de l'exercice de l'option, EMX recevra des avantages supplémentaires, incluant 110 000 £ en actions Mila, une redevance NSR de 2,5 % et des paiements de redevance anticipés commençant à 20 onces d'or. Les projets, situés dans la zone orogénique de Tasman dans l'est de l'Australie, contiennent des ressources aurifères définies historiquement et des sites miniers historiques. Des forages récents à Yarrol ont révélé des intersections notables, y compris 17,8 mètres avec une moyenne de 4,01 g/t d'or.
EMX Royalty hat mit Mila Resources PLC einen Explorations- und Optionsvertrag für die Projekte Yarrol, Mt Steadman und Queensland Gold unterzeichnet. Im Rahmen des Vertrags erhält EMX 25.000 AUD, 16 Millionen Mila-Kaufwarrants und Arbeitsverpflichtungen in Höhe von 450.000 AUD im ersten Jahr. Bei Ausübung der Option erhält EMX zusätzliche Vorteile, darunter 110.000 £ in Mila-Aktien, eine NSR-Royalty von 2,5 % und Vorauszahlungen von Royalties, die bei 20 Unzen Gold beginnen. Die Projekte, die sich in der Orogene Zone Tasman im östlichen Australien befinden, enthalten historisch definierte Goldressourcen und historische Bergbaustätten. Jüngste Bohrungen in Yarrol haben bemerkenswerte Schnittpunkte ergeben, darunter 17,8 Meter mit einem Durchschnitt von 4,01 g/t Gold.
- Secured immediate cash payment of AUD $25,000 and 16 million purchase warrants
- Will receive 2.5% NSR royalty upon option exercise
- Recent drilling results show promising gold grades (17.8m @ 4.01 g/t gold at Yarrol)
- Projects include historically defined gold resources and proven mining areas
- Projects were previously returned by Many Peaks after initial exploration
- Historical resources are not compliant with current standards
Insights
The option agreement with Mila Resources represents a strategic expansion opportunity with favorable terms. The deal structure includes
- A meaningful
2.5% NSR royalty with buyback provisions tied to NPV - Escalating advance royalty payments starting at 20 oz gold annually
- Work commitments including 30,000 meters of drilling and resource definition targets
Historical drilling results showing intervals of 4.01 g/t gold over 17.8m at Yarrol and multiple gold-bearing zones across the projects suggest legitimate exploration potential. The projects' location in the productive Tasman Orogenic Zone, near active mines like Mt Rawdon, adds credibility to the exploration thesis.
This deal exemplifies EMX's asset monetization strategy, converting early-stage projects into potential long-term revenue streams through structured option agreements. The transaction provides multiple value capture opportunities:
- Near-term catalyst through 16 million warrants in Mila Resources
- Milestone-based cash/share payments tied to resource definition
- Royalty income potential from three separate project areas
The partner selection is strategic - Mila Resources brings LSE listing status and fresh capital for aggressive exploration. The deal structure incentivizes rapid project advancement while maintaining EMX's upside exposure through the royalty component.
Vancouver, British Columbia--(Newsfile Corp. - November 1, 2024) - EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the "Company" or "EMX") is pleased to announce the execution of an exploration and option agreement for its Yarrol, Mt Steadman and Queensland Gold projects to Mila Resources PLC ("Mila", LSE:MILA). Mila is a well-capitalized London Stock Exchange listed company seeking to broaden its exploration portfolio in Australia. The agreement provides EMX with a cash payment, warrants and work commitments during a one-year option period, and upon exercise of the option, EMX will receive additional cash payments, equity in Mila, advance royalty payments, milestone payments and a
The Yarrol and Mt Steadman projects both contain historically defined gold resources in addition to sites of historic gold mining activities (see notes regarding the historical mineral resources below). The Yarrol project also contains areas with cobalt-enriched manganese oxide mineralization and heavy mineral sands deposits. The nearby Queensland Gold project lies to the north of Yarrol and Mt Steadman (see Figure 1) and contains multiple historic gold mines, gold occurrences, drill defined zones of gold mineralization, and numerous additional geochemical anomalies enriched in gold and copper.
EMX looks forward to working with Mila to commence work on the projects and to follow up on recent drill and sampling programs. This transaction is another example of the execution of EMX's business model in providing turn-key and drill ready exploration projects to its partner companies in exchange for royalty interests and other considerations.
Commercial Terms Overview. EMX will receive AUD
- Issue the equivalent of £110,000 in shares of Mila (with certain escalation clauses) and make an initial advance royalty payment equivalent to 20 ounces of gold in cash, shares or bullion.
- Grant EMX an uncapped
2.5% NSR royalty and make annual advance royalty ("AAR") payments commencing at 20 ounces of gold until the fifth anniversary of the agreement, at which time the AAR's will increase to 35 ounces of gold until the completion of a Preliminary Economic Assessment, at which time the AAR's will increase to 50 ounces of gold. The AARs can be paid in cash, shares or bullion. - Upon the second anniversary of the agreement, pay EMX an additional AUD
$125,000 in cash or shares of Mila, and commit to completing a JORC Code or NI-43-101 compliant resource estimate on at least one of the project areas. - By the fifth anniversary of the agreement, complete a cumulative of 30,000 meters of drilling and/or define a resource of at least 400,000 ounces of gold with at least
40% of those ounces defined as "indicated" resources. - Deliver certain milestone payments.
- For each project, upon delivery of a feasibility study Mila can repurchase
1.25% of the EMX royalty for a payment equating to65% of the post-tax royalty net present value (NPV) as defined in the feasibility study.
Overviews of the projects. Each of the projects lie within the Tasman Orogenic Zone of eastern Australia, which hosts significant gold mines and deposits including Cracow, Mount Morgan and Mount Rawdon (see Figure 1).
Yarrol Project: The 59,520 Ha Yarrol Project is located between the Queensland Gold project and Evolution Mining's Mt Rawdon gold mine and is positioned along the regional scale Yarrol Fault zone. Several other historical mines and active exploration projects also lie along the Yarrol Fault structural trend.
Yarrol was the site of historical gold mining activities in the 1800's through the 1930's, with historical gold production averaging ~10 g/t.1 Further exploration and assessments conducted in the 1980's and 1990's led to the definition of two historical gold resources (see notes regarding the historical mineral resources below). Gold mineralization at Yarrol is present as quartz sulfide veins and zones of silicification developed in and around Permian-aged dioritic intrusions. EMX conducted a two-hole confirmation drill program in late 2022, resulting in the intersection of 17.8 meters averaging 4.01 grams per tonne (g/t) gold from 61 meters in drill hole DD22-YA187, and 12 meters at 0.91 g/t gold from 92 meters in drill hole DD22-YA188 (see EMX News Release dated November 14, 2022)2.
Many Peaks Gold Ltd (now Many Peaks Minerals Ltd or "Many Peaks", ASX:MPK) optioned the project from EMX in 2023 and conducted various exploration programs before changing its strategy to focus on western African projects in early 2024. In addition to other programs, Many Peaks drilled six reconnaissance diamond drill holes at Yarrol totaling 1,210 meters that included a drill intercept of 16 meters averaging 0.75 g/t gold from 42 meters in hole YAD-189 (see Many Peaks news releases dated January 29 and 30, 2024)3. The project was returned to EMX in mid-2024.
Mt Steadman Project: The 5,760 hectare Mt Steadman project is an intrusion-related gold system ("IRGS") located along the Perry Fault system, a major structural feature in the region that also hosts the nearby Mt Rawdon Mine. The Mt Steadman project was the focus of exploration in the 1990's when shallow reconnaissance drilling programs led to the recognition and definition of historical gold resources (see notes regarding the historical mineral resources below). Several historic mines are also located on the Mt Steadman project (Mt Steadman, Venus and London), and were initially worked in the 1880's with periodic production continuing into the 1940's.
In the 1990's mineralized sheeted vein swarms (IRGS-style mineralization) were recognized at the Fitzroy prospect, where over 4,000 meters of shallow drilling led to the definition of historic gold resources1. Examples of historical drill intercepts at Mt Steadman's Fitzroy prospect include reverse circulation drill holes with intercepts that include 23 meters from surface averaging 1.04 g/t gold in drill hole RC95MS7, 24 meters from surface averaging 1.13 g/t gold in RC85MS10, and 26 meters from surface averaging 1.00 g/t in RC95MS44 (true widths unknown)4.
1 Independent Geological Report for MGT Mining Ltd, 2010. https://www.nsx.com.au/ftp/news/021723444.PDF. EMX has not performed sufficient work to verify historical sample results and production figures, however, from EMX's field reviews of the Yarrol and Mt Steadman properties, these data are considered to be reliable and relevant.
2 True widths remain unknown but are estimated to be in the 50
3 True widths not reported.
4 The historical drilling was completed by Probe Resources in 1995 and 1996 and reported to Queensland Geologic Survey. EMX has not done sufficient work to classify these results as compliant with NI 43-101 regulation, these results should not be relied upon until they are confirmed. However, EMX believes these results are reliable and relevant.
Many Peaks also optioned the Mt Steadman project from EMX in 2023 and drilled two reverse circulation ("RC") drill holes on the property totaling 205 meters. Many Peaks reported an intercept of 8 meters averaging 2.63 g/t gold from 8 meters in RC drill hole MS041 (see Many Peaks news releases dated January 29 and 30, 2024). Many Peaks also completed additional soil sampling surveys, but identified gold anomalies were not followed up and the project was returned to EMX in mid-2024.
Queensland Gold Project: The 47,680 Ha Queensland Gold Project has been the site of historical mining and exploration activities for over a century. In the mid-1990's, the Boggy Creek gold prospect was explored by CRA Exploration and North Ltd (both precursor companies to what is now Rio Tinto Exploration Pty Limited ("RTZ"). Drilling by CRA and North Ltd intercepted long intervals (i.e., >25 meters) of gold mineralization associated with quartz vein stockworks in rhyolitic-dacitic intrusions, typical of IRGS systems. Several of the historic CRA and North Ltd holes ended in mineralization.
In terms of historical production, gold was discovered at Monal Creek in 1891, leading to the development of the Monal Goldfields in the northwest portion of the EMX license. This area is marked by historical shafts, adits, mine dumps and processing sites, where gold mineralization was present in multiple parallel quartz vein reefs. Eight reef deposits were discovered and mined, with the gold mineralization appearing to extend for several kilometers along strike.
Many Peaks optioned the Queensland Gold project from EMX in 2020 and executed several exploration programs on the project. Many Peaks drilled twelve RC holes at Boggy Creek totaling 1,806 meters, and six additional reconnaissance drill holes elsewhere on the property (totaling 531 meters). Many Peaks also conducted various rock-chip, soil, auger and air core sampling programs at various locations on the property. On June 7, 2022, Many Peaks announced drill results from the Boggy Creek program that included intercepts of 7 meters averaging 2.04 g/t from 13 meters in drill hole BCRC003, 17 meters averaging 0.75 g/t from 10 meters in drill hole BCRC005 and 11 meters averaging 0.53 g/t from 73 meters in drill hole BCRC0073 (see Many Peaks news release dated June 7, 2022).
More information on the Projects can be found at www.EMXroyalty.com.
Comments on Historical Mineral Resources. The historical mineral resources at Yarrol and Mt Steadman were reported in 2010 by MGT Mining Ltd, which was a publicly traded Australian company (ASX: MGT) at the time of publication. Discussions of the projects and historic resources can be found at: https://www.nsx.com.au/ftp/news/021723444.PDF. EMX has not done sufficient work to verify the historical resources and is not considering these resources to be current or compliant with NI43-101 standards. Additional drilling and sampling would be required to confirm the resources, but EMX considers the published historical estimates to be relevant and reliable.
Comments on Nearby Mines and Deposits. The mines and deposits discussed in this news release provide context for EMX's projects, which occur in similar geologic settings, but this is not necessarily indicative that the Company's projects host similar styles, tonnages or grades of mineralization.
Dr. Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of 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 June 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
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Notes: Mt Rawdon production data from Evolution Mining: https://evolutionmining.com.au/wp-content/uploads/2023/11/Mt-Rawdon-fact-sheet-FY23F.pdf. Mt Morgan production data from Mt. Morgan: A. Taube; The Mount Morgan gold-copper mine and environment, Queensland; a volcanogenic massive sulfide deposit associated with penecontemporaneous faulting. Economic Geology; 81 (6): 1322-1340. Cracow historic production data from Aeris Resources web page for the Cracow Operation: https://www.aerisresources.com.au/assets/cracow/.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228530
FAQ
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