Elemental Altus inks US$5M royalty deal with First Mining

Elemental Altus Royalties (TSXV: ELE; US-OTC: ELEMF) has entered into a binding agreement to acquire a portfolio of 19 royalties from a subsidiary of First Mining Gold (TSX: FF; US-OTC: FFMGF).

Total consideration is US$5 million, of which US$3.5 million will be paid in cash and US$1.5 million in Elemental Altus common shares (roughly 0.9% of those outstanding).

Upon completion, Elemental Altus would increase its global royalty land coverage by 20% (1,500 sq. km), bringing the royalty portfolio to more than 75 royalties covering around 9,000 sq. km.

The company says the transaction would significantly expand its North American royalty presence with an additional five royalties in Canada and the U.S.

Included in the royalty package is a 2% net smelter return (NSR) royalty on the Pickle Crow gold project in Ontario, one of the highest-grade gold deposits  in the world, and a past producer of 1.5 million oz. gold, and a 1.5% NSR royalty on the Hope Brook gold project in Newfoundland, which previously produced roughly 750,000 oz. gold.

“The acquisition of this royalty portfolio materially expands our development pipeline in Canada. The Pickle Crow and Hope Brook projects are both former operating gold mines which have reportedly produced over 2.2 million ounces of gold historically, and are currently the subject of extensive exploration and investment,” Frederick Bell, CEO of Elemental Altus, commented.

Pickle Crow is a development-stage gold project that is 100% owned by Australia’s Auteco Minerals (ASX: AUT). Located in the world-class greenstone lode gold Uchi sub province of Ontario, the Pickle Crow property currently has a JORC-compliant 2022 inferred resource of 2.2 million oz. gold in 8.9 million tonnes grading 7.8 grams gold per tonne.

Earlier this month, Auteco received firm commitments from investors to raise around A$9 million, which will be used to fast-track exploration work focused on targeting new discoveries and continuing to step out on the existing resource.

Elemental Altus’ royalty covers 190 sq. km of the project’s total area, including all current resources, historical workings, an existing and unused 225 tonne per day mill, and several priority regional targets.

Hope Brook is an advanced-stage, high-grade gold project owned by Big Ridge Gold (TSXV: BRAU; US-OTC: ALVLF). Located 85 km east of Port aux Basques, Nfld., the property is host to a former gold mine that produced 752,162 oz. from 1987 to 1997.

The 260 sq. km project, entirely covered by Elemental Altus’ royalty, has well maintained infrastructure on site including an operational 28-person camp, an 1,100-metre airstrip, ice-free docking facility and connection to the provincial electrical power grid via an on-site substation.

Hope Brook currently hosts an indicated resource totalling 844,000 oz. of gold in 5.5 million tonnes grading 4.77 grams gold per tonne and 110,000 inferred oz. in 836,000 tonnes grading 4.11 grams gold. Big Ridge Gold has plans to update the resource estimate during the first half of 2023.