Altus Strategies PLC (AIM:ALS, TSX-V:ALTS, OTCQX:ALTUF) has completed the first close of up to 24 royalties and royalty interests from Newcrest Mining.
The royalties, acquired via a strategic joint venture with AlphaStream, are being acquired for a gross consideration of US$37.5mln of which US$24mln is payable by Altus.
It includes royalties over two producing mines, one near producing mine and 12 development and exploration stage assets. Altus said the package has potential to pay up to US$3.5mln of annual revenue.
"We are pleased to confirm the first close of the Newcrest gold royalty acquisition, following our recently announced and oversubscribed US$26.1mln placement,” said Altus chief executive Steve Poulton.
“The consideration payable by Altus for the whole portfolio of royalties is US$24mln and this is expected to generate up to a potential post tax income of US$3.5 million per year based on a forecast 10-year average.
"The portfolio provides Altus with immediate cash flow, portfolio diversification and is heavily weighted towards gold in Australia, a 'top tier' jurisdiction. The deal secures royalties and royalty interests over two producing mines, one near production mine, up to fifteen development stage projects and up to six exploration stage assets.”
Poulton, meanwhile, added that the company continues to accelerate exploration at its 100% owned Diba gold project in western Mali, with a drill programme underway and results can be used in an updated mineral resource estimate and preliminary economic assessment.
“In addition, our field teams have been assessing a number of potentially significant gold prospects within our portfolio of exploration licences in Egypt,” he added.
“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."