(Alliance News) - Altus Strategies PLC shares advanced Monday morning after the mining royalty company said it has partially completed that acquisition of a royalty interest in the producing Caserones copper mine in northern Chile.
Altus shares jumped 16% to 71.90 pence each in London late Monday morning.
The Africa and South America-focused company said it has acquired 76% of the 0.418% net smelter return royalty interest for Caserones, with the remaining 24% expected to go through next week Wednesday.
The net smelter return is expected to generate around USD3.2 million per year for Altus after tax.
The acquisition is being done through a 50-split special purpose vehicle with Vancouver-based EMX Royalty Corp. In total, the joint venture is acquiring a 0.836% net smelter return royalty interest for USD68.2 million.
Altus has paid USD26.2 million for the initial three-quarters of the mining royalty.
In total, Altus is paying USD34.1 million for its share of the royalty, which will be funded via a USD29 million acquisition loan facility agreement provided by La Mancha Fund Scsp.
The Caserones mine is owned and operated by JX Nippon Mining & Metals Corp of Japan and has an estimated 17 years of production remaining.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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