EMX Royalty – Recapping Recent Royalty Transactions With A Focus On Discovery Optionality
Dave Cole, President and CEO of EMX Royalty Corp (TSX.V: EMX) (NSYE: EMX), joins us for a comprehensive update on some of the key recent royalty transactions, with a focus on “discovery optionality” to augment their portfolio of royalties, option properties, and strategic share holdings. We start off by outlining their unique triple-pronged approach to growing value by generating royalties through early stage prospect generation, by making strategic acquisitions of undervalued royalties, and by holding substantial strategic equity positions in other mining companies.
Dave reviews some recent generative transactions starting with the option agreement for EMX’s Flåt and Bamble nickel-copper sulfide projects in Norway to Londo Nickel Limited, a public unlisted Australian Company. The agreement provides EMX with 2.5% Net Smelter Return royalty interests, cash and equity payments, work commitments and other considerations.
Next we reviewed the news out August 1st, regarding the binding term sheet with Franco-Nevada Corporation for the joint acquisition of newly created precious metals and copper royalties sourced by EMX Royalty. Franco-Nevada will contribute 55% (up to US$5.5 million) and EMX will contribute 45% (up to US$4.5 million) towards the royalty acquisitions, with the resulting royalty interests equally split (i.e. 50/50). We discuss the long-standing support Franco Nevada has shown to the EMX Royalty business model, and why Dave is excited to partner with them once again looking at the earlier-stage discovery optionality opportunities.
Dave also unpacks the news announced on August 8th about the execution of an agreement to add its Mjövattnet and Njuggträskliden nickel-copper-PGE-cobalt projects in Sweden to an existing arrangement with Kendrick Resources PLC, a current EMX partner. Mjövattnet and Njuggträskliden battery metals projects will follow the same schedule of work commitments, advance royalty payments and milestone payments as the Espedalen battery metals project in Norway, another EMX royalty property being advanced by Kendrick. EMX will retain a 3% NSR royalty on the Swedish Projects along with other considerations.
We wrap up with bigger picture concepts on the strength in diversification of projects, solid operators, and commodities within the EMX Royalty project portfolio, and also check in on the progress with the ongoing Timok royalty resolution.
If you have any questions for Dave regarding EMX Royalty Corp, then please email Shad@kereport.com.
- In full disclosure, Shad is an existing shareholder of EMX Royalty Corp.