First Close of Newcrest Gold Royalty Portfolio Acquisition

2021-12-21 / @thenewswire

(TheNewswire)

21 December 2021 – TheNewswire - Altus Strategies Plc (AIM:ALS), (TSXV:ALTS), (OTC:ALTUF) announces the completion of the first close (“First Close”) of the acquisition (the "Acquisition") of a portfolio of up to 24 royalties and royalty interests (each a “Royalty” and together the “Royalties”) from Newcrest Mining Ltd and certain of its group companies (together “Newcrest”) announced on 13 December 2021. The Royalties are being acquired through a strategic joint venture with AlphaStream Limited (“AlphaStream”), a specialist mining royalty and streaming company. The total consideration for the Acquisition is US$ 37.5 million (“Consideration”) with the aggregate amount payable by Altus being US$ 24.0 million.

As part of the First Close, Altus and AlphaStream have transferred an aggregate US$ 32,462,500 to Newcrest with the remaining aggregate balance of up to US$ 5,037,500 due to close at the end of January 2022 (“Second Close”), once certain pre-emptive rights on nine of the exploration stage royalties have either expired or been exercised. Any exercise of pre-emptive rights will cause the Consideration to be reduced.

Highlights:

First Close of the Newcrest gold royalty portfolio Acquisition completed
First Close includes Royalties over two producing mines, one near producing mine and 12 development and exploration stage assets
Potential for up to US$3.5 million annual (post tax) revenue to Altus on total portfolio based on a forecast 10 year average (also see Cautionary Note Regarding Forward-Looking Statements)
Total portfolio comprises:
- ooRoyalties over two producing mines, one near producing mine and up to 21 development and exploration stage assets
- ooUp to 23 royalties located in Australia, a tier-1 jurisdiction
- ooRoyalty on the Bonikro gold mine in Côte d’Ivoire
Aggregate First Close consideration of US$32,462,500 paid by Altus and AlphaStream
Second Close of up to US$5,037,500 expected to be paid by Altus and AlphaStream in February 2022
Further royalty opportunities under review in parallel with active exploration in Egypt and Mali

Steve Poulton, Chief Executive of Altus, commented:

“We are pleased to confirm the First Close of the Newcrest gold royalty Acquisition, following our recently announced and oversubscribed US$26.1 million placement. The consideration payable by Altus for the whole portfolio of royalties is US$24 million and this is expected to generate up to a potential post tax income of US$3.5 million per year based on a forecast 10-year average.

“The portfolio provides Altus with immediate cash flow, portfolio diversification and is heavily weighted towards gold in Australia, a ‘top tier’ jurisdiction. The deal secures royalties and royalty interests over two producing mines, one near production mine, up to fifteen development stage projects and up to six exploration stage assets.

“In parallel, Altus continues to accelerate exploration at its 100% owned Diba gold project in western Mali, with a drill programme underway. Results from the drilling programme will be used to produce an updated mineral resource estimate and preliminary economic assessment. In addition, our field teams have been assessing a number of potentially significant gold prospects within our portfolio of exploration licences in Egypt. Altus is on a very strong growth trajectory and we look forward to receiving our first cashflow from the Newcrest portfolio early next year and updating shareholders on the results from our active exploration programmes”.

For further information, you are invited to visit the Company’s website www.altus-strategies.com or contact:

Altus Strategies Plc

Steven Poulton, Chief Executive

Tel: +44 (0) 1235 511 767

E-mail: info@altus-strategies.com

SP Angel Corporate Finance LLP (Nominated Adviser)

Richard Morrison / Adam Cowl

Tel: +44 (0) 20 3470 0470

SP Angel Corporate Finance LLP (Broker)

Grant Barker

Rob Rees

Tel: +44 (0) 20 3470 0471

Tel: +44 (0) 20 3470 0535

Shard Capital Partners LLP (Broker)

Isabella Pierre / Damon Heath

Tel: +44 (0) 20 7186 9927

Yellow Jersey PR (Financial PR & IR)

Charles Goodwin / Henry Wilkinson

Tel: +44 (0) 20 3004 9512

E-mail: altus@yellowjerseypr.com

About Altus Strategies Plc

Altus Strategies (AIM: ALS, TSX-V: ALTS & OTCQX: ALTUF) is a mining royalty company generating a diversified and precious metal focused portfolio of assets. The Company’s differentiated approach of generating royalties on its own discoveries in Africa and acquiring royalties globally through financings and acquisitions with third parties, has attracted key institutional investor backing. The Company engages constructively with all stakeholders, working diligently to minimise its environmental impact and to promote positive economic and social outcomes in the communities where it operates. For further information, please visit www.altus-strategies.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information included in this announcement, including information relating to future financial or operating performance and other statements that express the expectations of the Directors or estimates of future performance constitute "forward-looking statements". These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, the completion of planned expenditures, the success of development and mining programmes by the mine operators, fluctuations in metal markets and currency exchange rates. Readers are cautioned not to place undue reliance on the forward-looking information, which speak only as of the date of this announcement and the forward-looking statements contained in this announcement are expressly qualified in their entirety by this cautionary statement.

Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. The forward-looking statements contained in this announcement are made as at the date hereof and the Company assumes no obligation to publicly update or revise any forward-looking information or any forward-looking statements contained in any other announcements whether as a result of new information, future events or otherwise, except as required under applicable law or regulations.

TSX Venture Exchange Disclaimer

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organisation of Canada accepts responsibility for the adequacy or accuracy of this release.

Market Abuse Regulation Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. Upon publication of this announcement, the inside information is now considered to be in the public domain for the purposes of MAR.

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