Altus Strategies plc has completed the first close of a gold royalty portfolio of interests in Australia and Africa.
STRATEGIC JOINT VENTURE
The package comprises up to 24 royalties and royalty interests from Newcrest Mining Ltd and certain of its group companies.
The acquisition is through a strategic joint venture between Altus and specialist mining royalty and streaming company, AlphaStream Ltd for US$37.5 million of which Altus pays of $24m.
Altus said that there was potential for up to $3.5m annual (post tax) revenue to Altus on the total portfolio based on a forecast 10-year average.
PORTFOLIO
The first close includes royalties over two producing and one near producing mine, up to fifteen development stage projects and up to six exploration stage assets.
Up to 23 royalties are located in Australia and one royalty is on the Bonikro gold mine in Côte d’Ivoire.
The company is also reviewing further royalty opportunities with active exploration in Egypt and Mali.
POTENTIAL
Chief executive Steve Poulton added that the portfolio provided Altus with immediate cash flow and portfolio diversification and was heavily weighted towards gold in Australia.
“In parallel, Altus continues to accelerate exploration at its 100% owned Diba gold project in western Mali, with a drill programme underway.
“In addition, our field teams have been assessing a number of potentially significant gold prospects within our portfolio of exploration licences in Egypt.
“Altus is on a very strong growth trajectory and we look forward to receiving our first cashflow from the Newcrest portfolio early next year and updating shareholders on the results from our active exploration programmes.”