Altus Strategies PLC - Didcot, England-based mining royalty company - Completes first close of purchase of royalty portfolio from Newcrest Mining Ltd. The acquisition is for a portfolio of up to 24 royalties and royalty interests. The royalties are being acquired through a strategic joint venture with AlphaStream, a specialist mining royalty and streaming company. The total consideration for the purchase is USD37.5 million, with the total amount payable by Altus being USD24.0 million.
As part of the first close, Altus and AlphaStream transferred USD32.4 million to Newcrest with the remaining balance of up to USD5.0 million due to close at the end of January 2022. The first close includes royalties over two producing mines, one near producing mine and 12 development and exploration stage assets. Altus says the deal has the potential to generate the company up to USD3.5 million in revenue 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," comments Chief Executive Steve Poulton.
Current stock price: 61.00 pence, down 3.4% on Tuesday
Year-to-date change: down 21%
By Will Paige; willpaige@alliancenews.com
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