Fulcrum Metals boost Saskatchewan uranium exploration assets by 221% to 59,000 acres. Watch the full video here.

Less Ads, More Data, More Tools Register for FREE

Altus Strategies agrees all-share merger with Elemental Royalties

Tue, 14th Jun 2022 12:50

(Alliance News) - Altus Strategies PLC said Tuesday it has come to an agreement with Elemental Royalties Corp over an all-share merger.

Vancouver, Canada-headquartered Elemental Royalties will issue Altus shareholders 0.5940 new shares in the enlarged group. As a result, Elemental shareholders will own about 52.9% of the new firm, with Altus shareholders holding 47.1%.

Shares in Altus were down 5.7% in London just after midday at 43.85 pence each, giving it a market cap of about GBP51.4 million.

"The boards of Elemental and Altus believe that the merger has compelling strategic logic and represents an attractive opportunity for both companies to create a global gold royalty company," the pair said in a statement on Tuesday.

Altus noted the exchange ratio offer "fair value" for both sets of shareholders.

Steven Poulton, current chief executive of Altus, will be appointed as executive chair of the new group, while Frederick Bell, current CEO of Elemental, will be appointed as CEO.

The new firm will be called Elemental Altus Royalties Corp.

Elemental noted it has received irrevocable undertakings from 57.9% of Altus shares, while 50.7% of Elemental shareholders have already backed the deal.

Poulton said: "Combining Altus and Elemental will create a new, strong and dynamic income-generating champion in the mining royalty sector. The transaction will bring significant benefits to all current shareholders and establish a compelling investment proposition to potential new institutional and other investors.

"Our enlarged scale and combined revenues will not only enhance our access to further high-quality royalties, but will also potentially reduce our cost of capital going forward. Shareholders of the enlarged group will also benefit from its differentiated strategy of low-cost and potential high-return royalty generation. As we succeed, we look forward to targeting medium-term capital distributions, as well as participating in further accretive consolidation opportunities in the royalty sector."

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

Related Shares

More News
16 Aug 2022 19:30

IN BRIEF: Altus Strategies interim loss widens on rising costs

Altus Strategies PLC - Oxfordshire, England-based mining royalty company - For the first half of 2022, pretax loss widens to GBP6.2 million from GBP2....

16 Aug 2022 14:24

IN BRIEF: Altus Strategies shares suspended from trading on AIM

Altus Strategies PLC - Oxfordshire, England-based mining royalty company - Shares are temporarily suspended from trading on AIM pending an announcemen...

8 Aug 2022 19:09

IN BRIEF: Altus Strategies shareholders back merger with Elemental

Altus Strategies PLC - Oxfordshire, England-based mining royalty company - Says shareholders vote in favour of "merger of equals" with Elemental Royal...

2 Aug 2022 12:22

IN BRIEF: Altus Strategies hails great potential of Diba & Lakanfla

Altus Strategies PLC - Oxfordshire, England-based mining royalty company - Receives an updated mineral resource estimate and a preliminary economic a...

2 Aug 2022 11:15

AIM WINNERS & LOSERS: Revolution Beauty tumbles; GYG eyes delisting

(Alliance News) - The following stocks are the leading risers and fallers on AIM in London on Tuesday.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.