- EMX Royalty Corp. (EMX) has closed its acquisition of royalty interest and deferred payments from SSR Mining Inc. and certain subsidiaries
- It includes US$18 million in future cash payments to be made to the owner of the portfolio
- EMX has paid US$33 million in cash and issued 12,323,048 million common shares of itself valued at US$32.5 million to SSR Mining
- EMZ will make deferred and contingent payments to SSR Mining of up to US$34 million if certain project milestones are achieved
- With other recent advancements in EMX’s global royalty portfolio and strengthening of cash flows across its operations, the SSR transaction represents a key step in EMX’s continued development
- EMX Royalty Corp. (EMX) is up 1.471 per cent and is trading at $3.45 per share at 3:04 p.m. ET
EMX Royalty Corp. (EMX) closed its acquisition of royalty interest and deferred payments from SSR Mining Inc. and certain subsidiaries.
The royalty portfolio consists of 16 geographically diverse royalties with four of its assets at advanced stages of project development.
It includes US$18 million in future cash payments to be made to the owner of the portfolio.
EMX has paid US$33 million in cash and issued 12,323,048 million common shares of itself valued at US$32.5 million to SSR Mining.
SSR Mining now owns an approximate 12 per cent undiluted equity interest in EMX.
EMZ will make deferred and contingent payments to SSR Mining of up to US$34 million if certain project milestones are achieved.
With other recent advancements in EMX’s global royalty portfolio and strengthening of cash flows across its operations, the SSR transaction represents a key step in EMX’s continued development.
Highlights from the portfolio include two royalties at Gediktepe, Turkey, which cover assets currently being developed by Lidya Madencilik Sanayi ve Ticaret A.S.
It includes a 10 per cent net smelter return royalty (NSR) on production from an oxide gold and silver deposit and a 2 per cent NSR on underlying polymetallic volcanogenic massive sulphide mineralization.
Other advanced-stage projects and interest royalties in the portfolio are in Argentina, Mexico, Nevada, and Canada.
The number of royalties acquired by EMX was reduced from 18 to 16, as the operator of two royalty properties in Mexico exercised the right of first refusal to acquire the royalties under the terms of their existing royalty agreements.
The total consideration for those two properties was U.S. $530,000, which has been deducted as a purchase price adjustment from the share consideration that EMX has paid.
The company entered a vendor-take-back note (VTB Note) with SSR Mining from which EMX borrowed US$7.8 million from.
The proceeds of the VTB Note will be utilized to cover VAT liability which will arise upon completion of the acquisition of the Gediktepe royalties.
The VAT will be recovered by EMX’s Turkish subsidiary holding the Gediktepe royalties over the next two to three years.
EMX Royalty Corp. (EMX) is up 1.471 per cent and is trading at $3.45 per share at 3:04 p.m. ET.
