Altius Minerals Corporation (“Altius”) (ALS:TSX) is pleased to
provide an update on its Project Generation (“PG”) business
activities and its public junior equities portfolio. The market
value of the junior equities portfolio at September 30, 2018 was
$67.8 million, compared to $60.3 million at June 30, 2018. In the
same period, the S&P/ TSX Venture Diversified Metals &
Mining Index was down 14%. Most of the change in the Altius
portfolio comes from equity appreciation while new purchases and
shares received from new project vend outs account for roughly $1.5
million of the increased value. The $67.8 million value does not
include the $10 million Champion Iron Ore convertible debenture,
which is convertible to equity at $1 per share, or any in-the-money
warrants held in the portfolio. An updated list of the public
equity holdings has been posted to the Altius website at
http://altiusminerals.com/projects/junior-equities.
Project Updates and New AgreementsOn September 26th
Alderon Iron Ore Corp. (TSX:IRON) announced the results of an
updated Feasibility Study on its flagship Kami Iron Ore Project in
Western Labrador, which confirmed the strong economics of the
project based on its ability to produce a premium-quality iron ore
concentrate with high iron content and ultra-low impurities. The
Feasibility Study indicated a $1.698 billion net present value (8%
discount rate) and an IRR of 24.6%, with estimated initial capital
costs of $982.4 million. Based on the updated Feasibility Study
mine life is expected to be 23 years, with a four-year payback
period (https://www.alderonironore.com/news-releases).
Altius is a major shareholder of Alderon and holds a 3% gross sales
royalty (“GSR”) on the Kami project.
In July, Allegiance Coal Limited (ASX:AHQ) announced a target
production rate of 750,000 saleable tonnes of metallurgical coal
over a mine life of approximately 22 years during the first phase
of its Telkwa metallurgical coal project. Subsequently, in
September the company announced a private placement raising A$2.4
million with proceeds largely directed toward completion of a
definitive feasibility study and permitting. Altius is a major
shareholder of Allegiance and holds a sliding-scale royalty on the
Telkwa project.
Following the quarter end, on October 5, 2018 Excelsior Mining
Corp. (“Excelsior”) (TSX:MIN) announced it had concluded a
settlement agreement that will result in the dismissal of the
appeal filed with respect to the company's Class III underground
injection control (UIC) area permit for the Gunnison copper project
(https://www.excelsiormining.com/news/news-2018/excelsior-mining-confirms-agreement-to-dismiss-uic-permit-appeal).
Excelsior stated that with all key permits in place it will be in
position to commence construction upon the completion of its
project financing plan. Altius is an Excelsior shareholder and
holds a 1% GSR on the project and has an option to acquire a
further 0.5% GSR once a mine construction decision is
formalized.
In August, Canstar Resources Inc. (“Canstar”) (TSX-V:ROX) and
Adventus Zinc Corp. (“Adventus”) (TSX-V:ADZN) completed their Plan
of Arrangement to consolidate the Buchans VMS camp in central
Newfoundland and other prospective zinc projects in the Province.
As part of the arrangement Altius vended its Daniel’s Harbour zinc
project for 2,419,024 common shares of Canstar in addition to the
1,215,000 flow-through shares it previously acquired directly, for
a combined holding of 3,669,024 common shares. In addition to its
equity stake, Altius also holds 2% net smelter return (“NSR”)
royalties on Canstar’s Buchans, Katie, La Poile, and Daniel’s
Harbour projects.
In August, Altius amended its strategic exploration alliance
agreement with Midland Exploration Inc. (“Midland”) (TSX:MD)
relating to exploration in the James Bay area of Quebec by
exchanging its various 50% property interests for 461,487 Midland
common shares and subscribing for an additional 198,386 Midland
common shares. Altius was also granted a 1% NSR royalty on the
alliance projects as part of the revised arrangement, with Midland
receiving an equal 1% NSR royalty on the same projects. This
revised agreement expires December 31, 2019 unless extended for
another two years. The group continues to discover new base and
precious metal prospects on the alliance properties with a goal of
attracting joint venture partners.
On September 24th Altius announced its incorporation of a
private company, Adia Resources Inc. (“Adia”), to accelerate its
ongoing exploration, advancement and financing of its Lynx Diamond
Project in Manitoba. Altius will vend the project into Adia and
retain a significant equity stake as well as a 2.5% GSR on the Lynx
project. It also announced that De Beers Canada Inc. will become a
shareholder of Adia by providing in kind technical services to the
ongoing exploration program
(http://altiusminerals.com/uploads/2018-09-24-ALTIUS-TRANSFERS-LYNX-DIAMONDS-FINAL.pdf).
Junior Equities Portfolio HighlightsEvrim Resources Corp.
(“Evrim”) (EVM:TSX-V), continues to advance the Cuale gold project
in Mexico, where trench results include 156.2 metres grading 9.57
g/t gold, including 64.6 metres grading 20.85 g/t gold
(http://www.evrimresources.com/s/news-releases.asp?ReportID=835632).
Evrim also announced a strategic financing with Newmont Mining
Corporation at $1.50 per share for gross proceeds of ~$7.3 million
to fund further exploration at Cuale. It further announced
conversion of its property interest in the Ermitano project in
Mexico to a 2% NSR royalty in exchange for a US$1.5 million payment
from First Majestic Silver Corp
(http://www.evrimresources.com/s/news-releases.asp?ReportID=835498).
Altius is a major shareholder of Evrim holding 11,464,875 common
shares of the company in addition to 2,000,000 warrants and it
holds a 1.5% NSR royalty on precious metals and a 1.0% NSR royalty
on base metals contained within the Cuale project.
Adventus Zinc Corp. (“Adventus”) (TSX-V:ADZN) continued to
deliver strong infill drilling results from the El Domo VMS deposit
at its Curipamba copper-lead-zinc project in Ecuador, including
19.41 metres of 7.0% copper, 1.61 g/t gold, 3.0% zinc, 18.4 g/t
silver and 0.14% lead. Adventus also announced a $9,200,000
financing at a market price of 90 cents per share with Wheaton
Precious Metals Corp. during the quarter. After participation in
the financing, Altius holds 15,548,861 shares in Adventus as well
as royalties on their portfolio of zinc projects in Ireland.
Sokoman Iron Corp. (“Sokoman”) (TSX-V:SIC) announced drill
results from the Moosehead gold project in Newfoundland that
included 11.9 metres of 44.96 g/t gold from drill hole MH-18-01
(http://www.sokomaniron.com/news/2018/07/24/sokoman-assays-confirm-high-grade-gold-moosehead-project-nl).
Subsequent to this announcement Sokoman completed a $3,000,000
financing and is now well funded to execute a drill program of up
to 10,000 metres which commenced in October. Altius owns 9,182,942
common shares of Sokoman plus 1,800,000 warrants and a 1.5% NSR
royalty on the project.
Constantine Metal Resources Ltd. (CEM:TSX-V), of which Altius is
a substantial shareholder, provided an updated mineral resource
estimate for the Palmer copper-zinc-gold-silver deposit located in
Alaska on September 27, 2018 of an estimated inferred resource of
5.3 million tonnes grading 9.9% zinc equivalent
(http://constantinemetals.com/news/2018/index.php?content_id=273).
Lawrence Winter, Ph.D., P.Geo., Vice‐President of Exploration
for Altius, a Qualified Person as defined by National Instrument
43-101 - Standards of Disclosure for Mineral Projects, is
responsible for the scientific and technical data presented herein
and has reviewed, prepared and approved this release.
More information on Altius projects can be found at
http://www.altiusminerals.com/.
About AltiusAltius directly and indirectly holds
diversified royalties and streams which generate revenue from 15
operating mines. These are located in Canada and Brazil and produce
copper, zinc, nickel, cobalt, iron ore, potash, and thermal
(electrical) and metallurgical coal. The portfolio also includes
numerous predevelopment stage royalties covering a wide spectrum of
mineral commodities and jurisdictions. Altius Minerals also holds a
large portfolio of exploration stage projects which it has
generated for deal making with industry partners that results in
newly created royalties and equity and minority interests. Altius
has 43,002,726 common shares issued and outstanding that are listed
on Canada’s Toronto Stock Exchange. It is a member of both the
S&P/TSX Small Cap and S&P/TSX Global Mining Indices.
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version on businesswire.com: https://www.businesswire.com/news/home/20181010005223/en/
Altius Minerals CorporationChad
Wellscwells@altiusminerals.comorFlora
Woodfwood@altiusminerals.com1-877-576-2209
Altius Minerals (TSX:ALS)
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