Excelsior Mining Corp (TSE:MIN) (FSE:3XS) (OTCMKTS:EXMGF) announced Wednesday that Altius Royalty Corporation has exercised the final royalty option under the share purchase and royalty option agreement between the company and Altius.
As a result of the exercise of the final option, Altius has paid the Excelsior C$5 million and in return received an additional gross revenue royalty on the Gunnison Copper Project.
"This investment by one of the mining industry's foremost royalty companies is another significant endorsement for the Gunnison Copper Project," said Excelsior President and CEO Stephen Twyerould.
"As we transition into the next new copper producer in the United States, we do so from a position of fiscal strength supported by excellent funding partners such as Altius."
On Friday, the group closed its US$75 million financing and promised it would start construction before year-end. First production is expected in the fourth quarter of 2019.
"We have been continually impressed by Excelsior's ability to overcome challenging conditions and to ultimately deliver the Gunnison Copper Project to this construction decision milestone. We offer our sincere congratulations to the team and look forward to Gunnison becoming the 16th paying royalty in our portfolio," said Brian Dalton, president and CEO of Altius.
The terms of the construction GRR are Altius has paid C$5.0 million for a gross revenue royalty that is equal to (i) 0.625% while the plant capacity of all the plants operated or constructed by the company or its affiliates for use in connection with the Gunnison Copper Project is less than 75 million lbs. of copper per annum; and (ii) 0.5% while the Plant Capacity is greater than or equal to 75 million lbs. of copper per annum.
Combined with the GRRs that Altius previously acquired, Altius now holds a 1.625% GRR on the Gunnison Copper Project while plant capacity is less than 75 million lbs. of copper per annum and 1.5% while the plant capacity is greater than or equal to 75 million lbs. of copper per annum.
Contact Katie Lewis at [email protected]
Follow her on Twitter: @kelewis