/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, BC, Dec. 21, 2020 /CNW/ - Elemental
Royalties Corp. ("Elemental" or "the Company") (TSXV:
ELE) (OTCQX: ELEMF), a gold-focused royalty company providing
investors with exposure to a growing portfolio of producing
royalties, is pleased to provide a corporate update covering three
of its existing royalties and one royalty that is part of the
portfolio being acquired from South32 Limited ("South32") as
announced on November 23, 2020.
Highlights
- Equinox Gold Corp. ("Equinox") (TSX: EQX, NYSE American:
EQX) announced the acquisition of Premier Gold Mines Limited
("Premier") (TSX: PG). Elemental owns a 1% Net Smelter
Returns ("NSR") royalty on Premier's Mercedes Mine
("Mercedes"), a key asset in the Premier portfolio, which
becomes payable to Elemental from July 28,
2022 following a time hurdle
- Endeavour Mining Corp. ("Endeavour") (TSX: EDV) announced the
acquisition of Teranga Gold Corp. ("Teranga") (TSX: TGZ).
Elemental owns a 1% NSR royalty on Teranga's Wahgnion Mine
- Panoramic Resources Limited ("Panoramic") (ASX: PAN)
announced the sale of 80% of its Panton project to Great Northern
Palladium Pty Ltd ("Great Northern") for A$12 million. Elemental owns a 0.5% NSR royalty
on the Panton project
- Rumble Resources Ltd (ASX: RTR) ("Rumble") completed
22,784 metres of drilling at their Western Queen Project
("Western Queen"). Elemental has agreed to acquire a royalty
varying from A$6/oz to A$20/oz on the core mining leases of the Western
Queen Project from South32
Frederick Bell, CEO of Elemental
commented: "Over the last month, we have seen transactions
announced that improve the quality of counter-party at three of
Elemental's royalties. Equinox's acquisition of Premier will see
the Mercedes mine operated by an enlarged company with a stronger
balance sheet, enhanced technical and managerial capacity and
growing gold production. This follows Endeavour Mining's
combination with Teranga Gold to create a top 10 gold producer
globally with a strong track record of organic growth across its
assets. Elemental has a 1% NSR royalty over Teranga's Wahgnion gold
mine. Lastly, the acquisition of Panton by Great Northern Palladium
should lead to an increased focus on the project, which had no
longer been core to its previous owner.
Meanwhile, one of the royalties being acquired from South32,
at Rumble's Western Queen project, continues to progress its drill
campaign and we look forward to further developments from
Rumble.
Despite the constraints of the COVID-19 pandemic, 2020 has
been a transformational year for Elemental. The company acquired
the Wahgnion royalty in January for US$12.5
million, listed on the TSX-V in July alongside a
C$24 million fundraise, and most
recently announced the acquisition of the South32 portfolio for
US$55 million – providing near term
cashflow and a firm weighting to Western
Australia. An oversubscribed C$16
million fundraise puts the company in a strong position as
it looks to continue to build on the platform already established
going into 2021."
Equinox Announces Friendly Acquisition of Premier
- Equinox to acquire Premier, retaining the Mercedes mine and
other assets as part of their core portfolio, and spin out
Premier's US assets into a new company
- The pro forma company will have a market capitalization of
approximately US$3.0 billion,
targeting 750,000 ounces of gold production in 2021, and has over
US$570 million in available
liquidity
- Announced potential for Mercedes to increase annual throughput
toward 80,000 to 90,000 ounces of gold (Q3 2020 production: 12,183
ounces of gold and 49,985 ounces of silver)
Endeavour Announces Friendly Acquisition of Teranga
- Endeavour to acquire Teranga,
creating a top 10 gold producer, with average annual gold
production of more than 1.5 million ounces
- Wahgnion mine compliments Endeavour's in-country presence in
Burkina Faso, where Endeavour are currently operating the Houndé,
Boungou, Mana, and Karma mines
- Potential to unlock additional value at Wahgnion through
exploration and asset optimization
- La Mancha, a privately held international gold company, has
committed to invest US$200 million in
the combined entity
Great Northern Palladium Acquires Panton Project
- On December 18, 2020, Panoramic
announced that it had sold 80% of its shares in a subsidiary
holding the Panton project to Great Northern, a private Australian
company, for A$12 million
- Great Northern has the right to acquire the remaining 20% for
A$3 million within six months of
completion, otherwise Panoramic will be free-carried by Great
Northern until a decision to mine
Panton has a Measured and Indicated Resource of 879,000 ounces
of platinum at 2.3 g/t and 963,000 thousand ounces of palladium at
2.5 g/t.
Western Queen Highlights
- Phase 3 Drilling Campaign
-
- Rumble have completed a total of 236 holes for aggregate of
22,784 metres
- Approximately 6,000 assays remain pending/unreported
- Resource estimation and database compilation has commenced
- Phase 4 drilling to target follow up discoveries, new shoots,
and extensional drilling
- Rumble had previously announced an encouraging range of
high-grade intersections from a number of prospects on November 4th, 2020 including:
-
- Duke Gold Shoot
-
- 8m at 26.3 g/t Au from
14m
- 6m at 25.9 g/t Au from
48m
- Western Queen Central
-
- 5m @ 22.1 g/t Au from
280m
- 9.7m @ 2.9 g/t Au from
459.3m
- Baron Zone
-
- 5m @ 6.1 g/t Au from
12m within a broader 21m @ 2.2 g/t Au
- 5m @ 4.8 g/t Au from
6m
- 4m @ 5.7 g/t Au from
54m
- Marquis Zone
-
- A new discovery of gold mineralisation over 500m to date
- 4m @ 5.7 g/t Au from
70m within a broader 12m @ 1.9 g/t Au from 70m
- 3m @ 4.1g/t Au from
57m within a broader 42m @ 0.6g/t Au from 46m
Qualified Person
Richard Evans, FAusIMM, Senior
Vice President Technical for Elemental, and a qualified person
under National Instrument 43-101 Standards of Disclosure for
Mineral Projects, has reviewed and approved the scientific and
technical disclosure contained in this press release.
On behalf of Elemental Royalties Corp.
Frederick Bell
CEO and
Director
For further information about the Company or this news release,
please visit our website at www.elementalroyalties.com or by email
at info@elementalroyalties.com.
Elemental is a proud member of Discovery Group.
Neither the TSX-V nor its Regulation Service Provider (as
that term is defined in the policies of the TSX-V.) accepts
responsibility for the adequacy or accuracy of this press
release.
About Elemental Royalties
Elemental is a gold-focused royalty company listed on the TSX-V
in Canada and provides investors
with lower risk precious metals exposure through a portfolio of
nine high-quality royalties. This enables investors to
benefit from ongoing royalty revenue, future exploration upside and
low operating costs. Elemental's experienced team seeks to secure
royalties in advanced precious metals projects, run by established
operators, from its pipeline of identified opportunities.
Cautionary note regarding forward-looking statements
This release contains certain "forward looking statements" and
certain "forward-looking information" as defined under applicable
Canadian securities laws. Forward-looking statements and
information can generally be identified by the use of
forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology.
Forward-looking statements and information include, but are not
limited to, statements with respect to the future growth and
development of the Company, future operations and work programs at
various royalties, La Mancha's $200
million investment in Teranga, the completion of
Endeavour's acquisition of
Teranga, the completion of Great Northern Palladium's acquisition
of the Panton Project and the completion of Equinox's acquisition
of Premier. Forward-looking statements and information are based on
forecasts of future results, estimates of amounts not yet
determinable and assumptions that, while believed by management to
be reasonable, are inherently subject to significant business,
economic and competitive uncertainties and contingencies.
Forward-looking statements and information are subject to various
known and unknown risks and uncertainties, many of which are beyond
the ability of Elemental to control or predict, that may cause
Elemental's actual results, performance or achievements to be
materially different from those expressed or implied thereby, and
are developed based on assumptions about such risks, uncertainties
and other factors set out herein, including but not limited to: the
requirement for regulatory approvals and third party consents, the
impact of general business and economic conditions, the absence of
control over the mining operations from which Elemental will
receive royalties, including risks related to international
operations, government relations and environmental regulation, the
inherent risks involved in the exploration and development of
mineral properties; the uncertainties involved in interpreting
exploration data; the potential for delays in exploration or
development activities; the geology, grade and continuity of
mineral deposits; the impact of the COVID-19 pandemic; the
possibility that future exploration, development or mining results
will not be consistent with Elemental's expectations; accidents,
equipment breakdowns, title matters, labor disputes or other
unanticipated difficulties or interruptions in operations;
fluctuating metal prices; unanticipated costs and expenses;
uncertainties relating to the availability and costs of financing
needed in the future; the inherent uncertainty of production and
cost estimates and the potential for unexpected costs and expenses,
commodity price fluctuations; currency fluctuations; regulatory
restrictions, including environmental regulatory restrictions;
liability, competition, loss of key employees and other related
risks and uncertainties. Elemental undertakes no obligation to
update forward-looking information except as required by applicable
law. Such forward-looking information represents management's best
judgment based on information currently available. No
forward-looking statement can be guaranteed and actual future
results may vary materially. Accordingly, readers are advised not
to place undue reliance on forward-looking statements or
information.
SOURCE Elemental Royalties Corp.