Projects & Royalties

Caserones

Project: Caserones
Commodity: Copper
Subsidiary: Altus Royalties Ltd
Location: Chile
Deposit Style: Porphyry copper-molybdenum
Key Attributes: 100 % clean and renewable electricity supply
Asset Stage: Paying royalty, estimated cash flow of US$ 3.2 M (post-tax) per year to Altus
Results: 3,561 kt @ 0.32 % Cu & 104 kt @ 94 ppm Mo (2019 year end)
Next Phase of Work: Mine life - 17 years from 2021 with further expansion potential
Deal Partner: JX Nippon Mining & Metals
Deal Terms: 0.418 % NSR interest attributable to Altus

Project Overview

The 17,000 hectare Caserones Copper Mine situated in the Atacama region of Northern Chile, approximately 162 km southeast of the city of Copiapó and 800 km north of the capital, Santiago. Altus holds an attributable 0.418 % NSR interest, estimated to generate cash flow of US$ 3.2 M (post-tax) per year to Altus.

The mine is owned and operated by Minera Lumina Copper Chile SpA, an indirect 100% owned subsidiary of JX Nippon Mining & Metals Corporation of Japan. It produces copper and molybdenum concentrates via an open pit truck and shovel from a conventional crusher, mill and flotation plant, as well as copper cathodes from a dump leach, solvent extraction and electrowinning plant.

Caserones and has been in operation for 5 years, reportedly produced 104,917 tonnes of copper and 2,452 tonnes of fine molybdenum in concentrates, as well as 22,056 tonnes of fine copper in cathodes. Life of mine production is estimated at ~148 kt Cu.Eq. per year over an expected 17 year mine life, plus additional expansion potential.

Caserones is located at the southern end of the well documented Maricunga mineral belt, with geology comprised of an Early-Miocene porphyry system associated with a cluster of dacite porphyries and breccias intruding Palaeozoic granitic, volcanic, and metamorphic rocks. Caserones has a well-developed supergene enrichment profile of oxide copper and secondary chalcocite that overlies hypogene sulfide (chalcopyrite-molybdenite) mineralization.

Royalty Overview

Altus is to acquire an effective 0.418 % NSR on Caserones for a consideration of US$34.1 M to be paid in cash by Altus. Altus hold 50 % of a 0.836 % NSR held by a private Chilean SPV company (Minera Tercero SpA) which is owned jointly 50% by Altus and 50% by EMX, purchased for a total consideration of US$68.2 M in August 2021. Caserones is estimated to generate cash flows of US$3.2M (post-tax) per year attributable to Altus, with an estimated 17 years mine life remaining.

Under the Agreement the NSR interest will be reduced to 2% and 1% if the London Metal Exchange quoted copper price falls below US$1.25 and US$1.00 per pound respectively.

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