EMX Royalty – Amended And Restated Agreement On The Cornerstone Timok Royalty With Zijin Mining
Dave Cole, President and CEO of EMX Royalty Corp (TSX.V: EMX) (NSYE: EMX), joins us for a key milestone update on the news released September 6th, announcing the execution of an amended and restated royalty agreement for its Timok royalty property with Zijin International Mining Company Ltd., a wholly owned subsidiary of Zijin Mining Group Ltd.
EMX and Zijin have agreed that the Timok royalty will consist of a 0.3625% Net Smelter Return (NSR) royalty that is uncapped and cannot be repurchased or reduced. The royalty covers Zijin’s Brestovac exploration permit area (including the Cukaru Peki Mining licenses), as well as portions of Zijin’s Jasikovo-Durlan Potak exploration license north of the currently active Bor Mine.
As part of the execution of the revised royalty agreement, EMX will receive approximately US$6.68 million. This includes royalty payments of $1.59 million from July-December, 2021, royalty payments of $3.20 million from the calendar year 2022, and $1.89 million for the period of January-June, 2023. From that point forward EMX will receive quarterly production royalty payments on an ongoing basis. This brings the number of production assets in the Company’s portfolio up to 6, in addition to the roughly 50 royalties also bringing in revenues through stage-gate payments, annual property and milestone payments, advance royalty payments and managements fees.
Next we focus on the other 11 advanced royalties, 152 exploration royalties, and 105 royalty generation properties focusing on the key “discovery optionality” part of their business strategy. Dave outlines 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.
Additionally, 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.
If you have any questions for Dave regarding EMX Royalty Corp, then please email Shad@kereport.com.
- In full disclosure, Shad is a shareholder of EMX Royalty at the time of this recording.