EMX Royalty Announces IGC’s Execution of a Share Purchase Agreement for the Sale of the Malmyzh Copper-Gold Porphyry Project
|June 14, 2018|
Vancouver, British Columbia, June 14, 2018 (TSX Venture: EMX; NYSE American: EMX) – EMX Royalty Corporation (the “Company” or “EMX”) is pleased to announce that IG Copper LLC (“IGC”) advises that a definitive Share Purchase Agreement (the “Agreement”) has been executed to sell the Malmyzh copper-gold porphyry project (the “Project” or “Malmyzh”) to a wholly owned subsidiary of Russian Copper Company (“RCC”), a privately held, leading copper producer in the Russian Federation (the “Transaction”). The Malmyzh exploration and mining licenses, covering properties located in the Russian Far East, are held by IGC (51%) and Freeport-McMoRan Exploration Corporation (49%). IGC is the operator of the Project, and EMX is IGC’s largest shareholder with 42% of the issued and outstanding shares (39% on a fully diluted basis).
The closing of the Transaction, which is expected to occur in the third quarter of 2018, is contingent on RCC completing additional due diligence that includes drilling and metallurgical studies, as well as receiving approval from the Russian Federal Anti-MonopolyService. In addition, there are certain financial arrangements and closing logistics that need to be completed to effect the Transaction. There can be no assurance that these conditions precedent will be satisfied, or that the Transaction will be completed.The estimated value of the Transaction to EMX’s interest in IGC, net of the financial arrangements, is approximately US $68 million.
Scotiabank Europe plc (“Scotiabank”), the U.K. subsidiary of The Bank of Nova Scotia, is an advisor to IGC regarding the Transaction. Scotiabank is a leading financial institution in international banking and markets, with widely recognized expertise in advisory services for the natural resources and mining sectors.
Please see www.EMXRoyalty.com for more information about the Malmyzh Project.
About EMX. EMX leverages asset ownership and exploration insight into partnerships that advance our mineral properties, with EMX receiving pre-production payments and retaining royalty interests. EMX complements its royalty generation initiatives with royalty acquisitions and strategic investments.
EMX’s strategic investment in IGC exemplifies the Company’s recognition of an early-stage opportunity with excellent growth potential. IGC has steadily built value at Malmyzh, while also adding 100% controlled exploration properties to its portfolio.
About IGC. IGC, a privately held company, is led by President and CEO Thomas E. Bowens, and includes key personnel with a track record of exploration discovery and project development in the Russian Federation.
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the three month period that ended on March 31, 2018 (the “MD&A”), and the most recently filed Form 20-F for the year ended December 31, 2017, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the 20-F and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.
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EMX Royalty Corp.