Published: July 30, 2024 |

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Elemental Altus Royalties has entered into a binding agreement to acquire two existing royalties from Cornish Metals including an uncapped 4 percent net smelter return (NSR) royalty on the Mactung Project in Canada currently being advanced by Fireweed Metals Corp.

“We are excited to add these two exceptionally high-grade royalties to the portfolio, specifically Mactung, which is being developed by Fireweed Metals with the support of the Lundin Group. The transaction with Cornish Metals builds our development pipeline with the potential for material revenue from a tier 1 jurisdiction in the medium term,” said Frederick Bell, CEO of Elemental Altus.

“The addition of tungsten to the portfolio offers exposure to one of the most economically important critical minerals in the EU, U.S., and Canada through a royalty on one of the largest, high-grade deposits in the world outside of China. Recent world events have sharpened the focus of western governments on critical metals, creating an opportunity at Mactung to establish a rare, reliable western source of tungsten which may attract government funding and fast track the project,” added Bell.

“Elemental Altus will continue to focus primarily on precious metal and base metal royalties, however this transaction reflects the company’s ability to opportunistically identify and transact on compelling royalties. Several catalysts are expected in the near term including an updated PEA and potential funding options available for Mactung which may unlock value and transform the project’s development timeline,” concluded Bell.

ACQUISITION HIGHLIGHTS

• An uncapped 4 percent NSR royalty over the Mactung Project
      • Mactung is one of the largest, high-grade tungsten deposits in the world and one of the few high-grade
        tungsten deposits outside of China
      • Environmental assessment completed as part of previous permitting
      • Mactung is owned by Fireweed Metals, a well-financed, Lundin Group company
      • Experienced management team with a track record of securing funding for mine development
      • Fireweed is expected to release a new PEA in 2024, building on the updated mineral resource estimate in
        2023

• An uncapped 1 percent NSR royalty on the high-grade Cantung Project, a formerly operating tungsten mine in
  Canada

Elemental Altus has agreed to pay $3 million in cash on the transaction close date. A second tranche of $1.5 million in cash is payable 12 months following the date of closing for a total consideration of $4.5 million.

As part of the transaction Elemental Altus will assume an obligation to pay a $1.1 million deferred payment due to Teck upon an investment decision being made to progress the project.

The Mactung Project is an advanced stage exploration project, 100 percent owned by Fireweed, a Lundin Group Company. In February 2023, Fireweed acquired an 100 percent interest in the project and subsequently released an updated mineral resource estimate in July 2023.

The deposit hosts tungsten skarn mineralization that has developed in carbonate-rich rocks adjacent to a large granitic intrusion.

The Cantung deposit is located the Northwest Territories, close to the Yukon border. Cantung is a tungsten mine which operated intermittently from 1962 until it closed in 2015 due to low commodity prices. A feasibility atudy completed in late 2014 included a 4-year mine plan based on historical probable mineral reserves.

Elemental Altus is an income generating precious metals royalty company with ten producing royalties and a diversified portfolio of pre-production and discovery stage assets. The company is focused on acquiring uncapped royalties and streams over producing, or near-producing, mines operated by established counterparties. The vision of Elemental Altus is to build a global gold royalty company, offering investors superior exposure to gold with reduced risk and a strong growth profile.

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