(Alliance News) - Altus Strategies PLC on Monday said it has agreed to acquire a gold-focused portfolio of cash-paying royalties in Australia and Africa.
The portfolio comprises two gold mines, one mine in near-production and 21 near-term development and exploration stage projects.
The Didcot, England-based mining royalty company will acquire the portfolio as part of a strategic joint venture with mining royalty firm AlphaStream Ltd from Newcrest Mining Ltd, and Altus will pay USD24.0 million for its own interest.
The royalties in Australia will be bought through a new Australian company which will be 80% owned by Altus, while the royalty in Cote d'Ivoire will be bought via a new firm owned 50/50 by Altus and AlphaStream.
Altus will fund the acquisition through the raising of USD25 million, around GBP18.8 million, through a placing and subscription of shares at 53.5 pence each. BMO Capital Markets Ltd will act as sole bookrunner, while Shard Capital Partners LLP and SP Angel Corporate Finance LLP are acting a lead managers.
"This proposed acquisition of a material portfolio of mining royalties and royalty interests from Newcrest heralds the transformation of Altus into a major royalty company backed by La Mancha. The Newcrest portfolio provides Altus with immediate cash flow, portfolio diversification and is heavily weighted towards gold in Australia, a 'top tier' jurisdiction," says Chief Executive Steve Poulton.
Shares in Altus Strategies closed 2.4% higher at 64.00 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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