Site icon Extractive Industries

Altus completes first closing on NSR for Caserones copper

Altus Strategies plc has completed the first closing of its agreement to acquire an effective 0.418% net smelter return royalty (NSR) interest on the producing Caserones copper mine located in the Atacama region of northern Chile.

Caserones: the first closing represents approximately 76% of the NSR being acquired (Minera Lumina copper mine)

AQUISITION

The mining royalty company is acquiring the NSR interest for $34.1 million through a strategic 50:50 partnership with EMX Royalty Corporation.

Altus and EMX have created a jointly owned special purpose vehicle (SPV) incorporated in Chile.

On completion of the acquisition, the SPV will have acquired an effective 0.836% NSR royalty for $68.2m.

Altus is principally financing the acquisition with a $29m acquisition loan facility agreement with La Mancha Fund SCSp.

The NSR interest is expected to generate cash flow of $3.2m (post-tax) per year to Altus.

FIRST CLOSING

Altus said that the initial 76% of 0.418% NSR interest had been acquired for $26.15m.

The SPV has agreed to purchase 43% of the issued and outstanding shares of an underlying royalty holder, Sociedad Legal Minera California Una de la Sierra Peña Negra (SLM California), through a share purchase agreement with the 16 shareholders of SLM California.

This will give the SPV an indirect ownership of 43% of SLM California’s 1.944% NSR royalty interest in Caserones (0.836% NSR royalty interest, held as to 0.418% by Altus and 0.418% by EMX).

Under the first closing, the SPV has acquired 33% of SLM California for $52.3m.

The first closing also represents approximately 76% of the NSR being acquired by the SPV.

The second and final closing of the remaining 10% of the shares (24%) of SLM California is anticipated to close by 1 September 2021.

Exit mobile version