TORONTO (Reuters) – Canada is preparing a list of potential US retaliatory tariffs and some of those could be on critical minerals, Energy and Natural Resources Minister Jonathan Wilkinson said on Thursday.
Wilkinson said that Canada was looking at points of leverage that will create maximum pressure on the United States to come to table to find a resolution to the tariff issue.
Canada could impose countermeasures on up to C$150 billion ($105 billion), a source familiar with the matter said on Wednesday.
Vancouver, British Columbia–(Newsfile Corp. – January 9, 2025) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (the “Company” or “EMX“) is pleased to announce that the Company ended the year with approximately $27 million in cash and cash equivalents and $35 million in long term debt that matures in July 2029 under an agreement with Franco Nevada Corporation. The Company’s balance sheet was strengthened because of several transactions closing before the end of the December quarter as discussed below.
Sale of Shares in Ensero Holdings Inc (“Ensero”) – Ensero repurchased all our common and preferred share holdings in Ensero for approximately $5.6 million. The Company invested approximately $3.8 million in Ensero in 2020, and since making the investment has earned approximately $1.0 million in dividends. The Company has sold all its holdings in Ensero as of December 31, 2024.
Early Property Payment at Berenguela Royalty Property in Peru – The Company received an early property payment from Aftermath Silver Ltd (“Aftermath”) totaling $2.9 million. Aftermath has one final payment totaling $3.25 million which is due in November 2026. The Company has a sliding-scale net smelter return (NSR) Royalty on all mineral production from the Project for the life of mine commencing at the declaration of commercial production, and includes a 1.0% NSR royalty on all mineral production when the silver market price is up to and including US$25 per ounce, and a 1.25% NSR royalty on all mineral production when the silver market price is over US$25 per ounce and when the copper market price is above US$2 per pound.
Royalty buy-down Completed at Park Salyer Property in Arizona – The Company has received $500,000 from Arizona Sonoran Copper Company Inc. (“Arizona Sonoran”) from the buyback of 1.0% NSR royalty covering the Park Salyer Property which is part of the Arizona Sonoran’s Cactus Property. The buy-down by Arizona Sonoran reduces the Company’s NSR royalty on Park Salyer from 1.5% to 0.5% which is not capped and cannot be reduced.
About EMX – EMX is a precious, and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”. Please see www.EMXroyalty.com for more information.
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
Forward-Looking Statements
This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
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 quarter ended September 30, 2024 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov.
Vancouver, British Columbia–(Newsfile Corp. – January 8, 2025) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (the “Company” or “EMX”) is pleased to announce it has completed its existing Normal Course Issuer Bid (“NCIB”) program announced on February 7, 2024. Under the NCIB, the Company was allowed to purchase for cancellation up to 5,000,000 common shares over a twelve-month period representing approximately 4.45% of the issued and outstanding shares prior to commencement. EMX has purchased for cancellation the full 5,000,000 common shares at an average price of US$1.65 per share totaling approximately US$8.3M including a recently purchased 1,375,600 shares in a block trade from an undisclosed seller at a price of approximately US$1.64 (C$2.35) per share.
About EMX. EMX is a precious and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”. Please see www.EMXroyalty.com for more information.
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
Forward-Looking Statements
This news release may contain “forward-looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
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 quarter ended September 30, 2024 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov.
Vancouver, British Columbia–(Newsfile Corp. – January 8, 2025) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (the “Company” or “EMX”) is pleased to announce that it has executed four separate option agreements (the “Agreements”), all dated January 7, 2025, with Pacific Ridge Exploration Ltd. (TSXV: PEX) (“Pacific Ridge” or “PEX”) for the Ripsey West, Royston, Red Star, and Mineral Hill projects (the “Projects” or individually a “Project”) located in Arizona, Nevada, Utah, and Wyoming, respectively. The Agreements provide EMX with cash payments, an equity stake in PEX, and required work commitments on the Projects during the earn-in period. Additionally, upon earn-in for a given Project, a 3% net smelter return (“NSR”) royalty, annual advance royalty (“AAR”) payments, and milestone payments provide a strong foundation for future upside as the Projects advance.
The Ripsey West Project is a shallow copper porphyry target in central Arizona’s Laramide copper province with exploration potential for both supergene and hypogene mineralization. The Royston Project in western Nevada targets a late Triassic-early Jurassic copper porphyry system. Of note, porphyries of this age have not traditionally been explored for in the region, even though this age of magmatic activity generally displays a stronger gold affinity than Laramide systems. The Red Star Project is a copper porphyry target adjacent to the historical Star mining district in Utah, and has added potential for skarn, manto, and carbonate-replacement deposit (CRD) styles of mineralization. The Mineral Hill Project in eastern Wyoming is centered on an alkaline intrusive complex, which displays both epithermal and copper-gold porphyry exploration potential.
EMX acquired the Projects through the staking of open ground after recognizing overlooked opportunities in districts with historical exploration. EMX’s track record of organically generating new targets in historical mining districts underscores the strength of the Company’s project generation business model.
Commercial Terms Overview (all dollar amounts in USD). Under the terms of the Agreements, subject to the approval of the TSX Venture Exchange, Pacific Ridge can earn 100% interest in each Project over a five-year option period by satisfying the following terms on a per-Project basis: a) upon receipt of regulatory approval, Pacific Ridge will pay $60,000 in cash and issue 200,000 Pacific Ridge shares (on a post 10:1 consolidation basis), and b) Pacific Ridge will also make option payments totaling $180,000, issue 1,175,000 additional shares, and complete $2,250,000 in exploration expenditures over the five-year term of the option agreement.
Upon option exercise by Pacific Ridge, EMX will retain a 3% NSR royalty on each applicable Project; 1% of the royalty may be bought back by first completing an initial 0.5% royalty buyback for a payment of $1,000,000 to the Company prior to the eighth anniversary of the Effective Date of the Agreement. If the first buyback is completed, then the remaining 0.5% of the royalty buyback can be purchased any time prior to production for $3,000,000. Pacific Ridge will also make AAR payments of $25,000 per Project, which will increase by $10,000 per year until reaching a cap of $75,000 per year. In addition, Pacific Ridge will make Project milestone payments consisting of: a) $500,000 upon completion of a Preliminary Economic Assessment, b) $1,000,000 upon completion of a Pre-Feasibility study, and c) $2,000,000 upon completion of a Feasibility Study.
Project Overviews
Ripsey West: The Ripsey West Project spans over 2,161 hectares and consists of 36 unpatented mining claims and eight state exploration leases in central Arizona’s prolific Laramide copper province. Historical exploration by Conoco, Bear Creek, Noranda, BHP, Freeport-McMoRan, and others concentrated on altered and mineralized outcrops adjacent to EMX’s primary target area. These outcrops display distal chlorite-epidote and sericitic alteration over a broad footprint measuring approximately four by six kilometers, with a central zone of moderate sericitic alteration. Locally, structurally controlled zones exhibit strong sericitic alteration and variable copper mineralization. Through a detailed compilation of historical drilling and an iterative structural study, EMX determined that the district has undergone significant tilting of approximately 90 degrees. The historically explored area represents distal alteration and mineralization, along the paleo-eastern margin of the tilted and dismembered porphyry copper system, whereas EMX’s Ripsey West Project targets the core of the system several kilometers to the west. Exploration by a previous partner included two drill holes totaling 649 meters which primarily tested the depth to bedrock. Beneath the post-mineral alluvium, the alteration in the drill holes matches well with the predictive interpretation of the system, but left the target and the core of the porphyry system untested at depth.
Red Star: The Red Star Project covers 3,005 hectares and consists of unpatented mining claims adjacent to the historical Star mining district in Beaver County, Utah. Geologic observations indicate that the source of polymetallic fissure veins and replacements in the Star mining district may be a concealed porphyry copper system. Although historical workers explored for the source porphyry, they misunderstood the timing relationships between the exposed mineralization and intrusive rocks in the area as well as erroneously mapped normal faults as thrust faults. Structural reinterpretation and geochemical zonation patterns in outcropping stratigraphy indicate a westward vector towards a down-faulted block, or blocks, within the Red Star Project. The strongest copper and pathfinder geochemical anomalies occur at the western side of the exposed Paleozoic sedimentary package, coincident with the highest abundance of prospects in the Star district. Recent geophysical datasets, including drone magnetics, induced polarization (IP), and magnetotelluric (MT) surveys, are supportive of a target in the same area independently predicted by geological and geochemical vectors. The abundance of Paleozoic carbonate rocks in the host stratigraphy indicates potential for skarn, manto, and CRD-style mineralization at the Red Star Project, in addition to the target Cu-Mo porphyry.
Royston: The Royston Project spans over 1,830 hectares and consists of 227 unpatented mining claims northwest of Tonopah, Nevada. The Royston Project represents a compelling porphyry prospect within a belt of Jurassic to late Triassic intrusive rocks in the western US, which are underexplored with respect to copper mineralization. Surface exposures and historical drilling reveal a significant zone of quartz-pyrite-sericite “QSP” style alteration in porphyry dikes and surrounding host rocks. Subsequent geological, geochemical, and geophysical work advanced EMX’s understanding of the system and led to the identification of strong vectors based on system-scale zoning of alteration and mineralization. A reconnaissance reverse-circulation (“RC”) drilling campaign was recently conducted which further validated the target concept and outlined a robust porphyry system which has undergone significant post-mineral tilting. Two of the RC drill holes were cased for re-entry with a core rig due to the shallow intersections of intense QSP (-clay) alteration with increasing base metal mineralization downhole. Follow-up core drilling will target the high temperature core of the porphyry system, which has not previously been intersected in drilling.
Mineral Hill: The Mineral Hill Project in eastern Wyoming spans over 600 hectares across 77 unpatented and 19 patented mining claims. The Project is centered on a zoned Eocene-age alkaline intrusive complex with an outer ring, interior intrusive zones, and a central breccia. Historical mining in the late 19th and early 20th centuries produced gold from alluvial deposits, gold and silver from the Treadwell Mine, and gold and copper from the Interocean Mine. EMX and previous partners recognized that the gold and silver mineralization at the Treadwell Mine is associated with lower-temperature adularia-bearing potassic alteration and is consistent with epithermal-style mineralization. In contrast, the gold and copper mineralization at the Interocean Mine is associated with higher-temperature potassic alteration mineral assemblages (including potassium feldspar and biotite), consistent with a porphyry system. Reconnaissance drill programs with previous partners confirmed these two distinct mineralization styles, but never followed up on initial drill results. Mineral Hill’s proximity to significant historical producers, such as the Homestake and Wharf mines, highlights the potential for additional discoveries in this productive belt.
EMX and Pacific Ridge look forward to commencing work on the Projects.
This transaction is another example of the execution of EMX’s business model in providing turn-key and drill ready exploration projects to its partner companies in exchange for royalty interests.
Comments on Adjacent or nearby Districts, Mines, and Deposits. The districts, mines and deposits discussed in this news release provide context for EMX’s projects, which occur in similar geologic settings, but this is not necessarily indicative that the Company’s projects host similar tonnages or grades of mineralization.
Michael P. Sheehan, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
About EMX. EMX is a precious and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”. Please see www.EMXroyalty.com for more information. For further information contact:
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
Forward-Looking Statements
This news release may contain “forward-looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
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 quarter ended September 30, 2024 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov.
Vancouver, British Columbia–(Newsfile Corp. – January 7, 2025) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (the “Company” or “EMX”) is pleased to announce the purchase of a 0.625% NSR royalty interest covering all minerals produced from the Urasar gold-copper project in northern Armenia, which is wholly owned and being advanced by Hayasa Metals Inc. (“Hayasa”, (TSXV: HAY), formerly Fremont Gold Ltd. Further to a Joint Acquisition Agreement between EMX and Franco-Nevada Corporation (“Franco”) entered into in 2023 (see EMX News Release dated August 1, 2023), Franco has also acquired a 0.625% NSR royalty.
Commercial Terms Overview. EMX and Franco will pay Hayasa a combined US$1 million (with EMX contributing US$450,000 and Franco contributing US$550,000 in accordance with the terms of the Joint Acquisition Agreement) in exchange for:
A 1.25% NSR royalty interest to be shared evenly between EMX and Franco (i.e. each company will receive a 0.625% NSR royalty interest) that covers the Urasar project licenses and a surrounding area of interest; and
500,000 share purchase warrants, which can be exercised on a one-for-one basis for common shares of Hayasa within 18 months at a strike price of C$0.22 per share (EMX and Franco will each receive 250,000 of the share purchase warrants).
As part of the transaction, EMX and Franco will have a right of first refusal in respect of any royalty, stream or similar interest on Urasar.
Overview of the Urasar Project. The Urasar gold-copper project was acquired by Hayasa in 2023 by direct acquisition of an exploration license from the Armenian government following an assessment of the Tethyan Metallogenic Belt by Hayasa that was led by Dennis Moore. Mr. Moore is a well-known and accomplished explorer who is credited with the discoveries of the Tocantinzinho and Cuiu Cuiu gold deposits in Brazil.
The Urasar project is positioned along a regional structural zone that juxtaposes an older package of ophiolitic rocks with younger volcanic and volcaniclastic rocks. Gold and copper mineralization are localized along the contact zones throughout the Urasar exploration license and elsewhere in the region. Urasar saw historic copper production by the French during World War I and was later explored by the Soviets in the 1920’s, 1930’s and 1950’s. Several Soviet era resources were defined (in accordance with the Soviet reporting systems at the time), but virtually no work has been completed since. The styles of mineralization at Urasar bear resemblance to the styles of mineralization in the Sokt gold deposit, the largest developed gold deposit in Armenia. Further information on the project is summarized on Hayasa’s website.
Armenia has seen recent exploration and development efforts by other western companies, including Orion Mine Finance and Osisko Gold Royalties, who are working to develop the Amulsar gold project in southern Armenia. In addition to its modern mining code and favorable fiscal regime, Armenia currently has over ten active metals mines, and mining is a significant contributor to its GDP.
EMX believes that Urasar has potential to become a significant discovery based upon the historical work done on the property, new surface geochemical and geophysical data collected by Hayasa, and overall geological characteristics. The royalty acquisition at Urasar represents the first co-investment between EMX and Franco as part of their Joint Acquisition Agreement.
Comments on Historical Mineral Resources. EMX does not consider the historical mineral resources defined at Urasar during the Soviet era to be compliant with NI 43-101 standards, nor is EMX treating the historic resources as current resources on the project. They are discussed here strictly for their historical context and should not be relied upon until they can be confirmed.
Comments on Nearby Mines and Deposits. The mines and deposits discussed in this news release provide context for EMX’s projects, which occur in similar geologic settings, but this is not necessarily indicative that the Company’s projects host similar styles, tonnages or grades of mineralization.
Dr. Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
About EMX. EMX is a precious and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”. Please see www.EMXroyalty.com for more information.
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
Forward-Looking Statements
This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
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 quarter ended September 30, 2024 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov.
Vancouver, British Columbia–(Newsfile Corp. – January 6, 2025) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (the “Company” or “EMX”) is pleased to announce that the Company has entered into a Royalty Agreement (the “Agreement”) with Minera Pampa de Cobre S.A.C. (“MPC”), a Peruvian company focused on restarting production at the Chapi copper mine located south of the city of Arequipa in Peru (the “ChapiMine“). MPC is owned indirectly by a privately held Canadian company, Quilla Resources Inc. (“Quilla”).
Pursuant to the terms of the Agreement, EMX will acquire a royalty interest of up to 2% of Net Smelter Returns (“NSR“) on minerals produced from the approximately 26,000 hectare property (“Property Royalty”) owned by MPC (see Figure 1), as well as up to a 2% NSR royalty from any minerals that are produced from outside the Property Royalty area, but that are processed at the Chapi Mine processing facilities (“Facilities Royalty”). The Agreement also includes a two-kilometer area of interest (“AOI”) around the Property Royalty area, and any property acquired by MPC within this AOI will also be subject to an NSR royalty of up to 2% (“AOI Royalty”). As consideration for the acquisition of the first 1% of the NSR interests, the Company has paid MPC the amount of US$3,000,000. A second 1% NSR interest can be acquired by EMX, at the election of MPC, for an additional US$7,000,000 until February 28, 2025. The Property Royalty is perpetual and cannot be reduced. The Facilities Royalty and the AOI Royalty will be reduced by half (to either 0.5% NSR or 1% NSR – depending on the MPC election) on July 1, 2034.
EMX’s right to receive royalty payments will be secured by a guarantee from Quilla, and by various personal property and real property security instruments in Peru. EMX’s security interests will be subordinated to those of Hartree Partners, LP (“Hartree”), acting as the first lien lender to MPC and Quilla, in accordance with an intercreditor agreement entered into between EMX, Hartree, MPC, and Quilla.
EMX is excited by the addition of a high-quality copper royalty to the portfolio that has excellent upside development and exploration potential located in the prolific Paleocene-Eocene copper-molybdenum porphyry belt of Southern Peru.
Background on Quilla
Quilla is a newly formed Canadian company that recently (December 2024) acquired MPC from Nexa Resources S.A. (NYSE: NEXA), one of the world’s top zinc producers with operations in Brazil and Peru. Quilla was founded by Victor Gobitz and a select group of shareholders looking to rapidly build an intermediate-sized base metals company. Mr. Gobitz is a senior mining executive who will be transitioning from his role as President and General Manager for the world class Antamina mine in Peru to lead Quilla. Mr. Gobitz has worked with a number of companies in Peru over recent years including Rio Alto Mining, Compañía Minera Milpo (now Nexa Resources Peru), and Compañía de Minas Buenaventura, and from his deep knowledge of the mining industry in Peru has assembled an experienced and accomplished team to quickly execute on Quilla’s plans to restart copper production at Chapi.
Background on the Chapi Mine1
The Chapi Mine is located in southern Peru’s Moquegua and Arequipa Departments at an elevation of approximately 2,750 meters, and has ready access approximately 50 kilometers south-southeast from the city of Arequipa. Historical, small-scale copper production, which is poorly documented, occurred intermittently from the 1930s through the early 1980s. Subsequently, between 2006 and 2012 the Chapi Mine produced approximately 5,000 to 8,500 tonnes per annum, initially of copper sulphates from open-pit and underground mining and heap leaching, and later copper cathodes from open-pit mining, heap leaching, and SX-EW (solvent extraction-electrowinning) processing. The grades mined during 2006-2012 were reported as 0.59% – 1.04% copper. The operations were halted in 2012 due to declining copper prices and operational challenges that were mainly related to insufficient ore control on materials delivered to the leach pads.
The historical Chapi Mine is comprised of two principal open pits, underground workings, a crushing and grinding circuit, heap leach pads, a solvent extraction plant, an electrowinning copper cathode plant, and related infrastructure including mine camp, office facilities, water supply, and power. Since 2012, Chapi has been maintained under care and maintenance with the principal permits for mining operations remaining in place under a temporary suspension.
Chapi Geology and Exploration Upside2
The deposits at Chapi are comprised of sandstone-hosted copper mineralized mantos, partially oxidized and secondarily enriched, that are related to a series of porphyry intrusions. The Chapi Mine lies between, and directly along trend from, some of the world’s largest producing porphyry copper deposits, including Cerro Verde and the Cuajone-Quellaveco-Toquepala cluster (refer to inset in Figure 1). All of these deposits and districts, as well as others, comprise the Paleocene-Eocene Cu-Mo porphyry belt of Southern Peru, and contribute to making Peru the second ranked copper producer in the world.
The ~26,000 hectare land package owned by MPC, and subject to EMX’s royalty interests, includes historical resources based on an extensive drill database that delineates the well-mineralized, leachable manto horizons at Chapi, which are open for potential resource expansion from both open pit and underground exploitation. Porphyritic intrusions, intimately associated with the mineralized mantos, have low-grade copper mineralization in sericitic-altered zones, but also have exploration potential for higher-grade copper mineralization within the porphyry system. Further, although gold assays in the drill database are limited in number, those that are present suggest that gold, not recovered by the historical mining operations, might have wider exploration potential.
Additional, potentially leachable copper-oxide and chalcocite drill-defined mineralization, as well as primary sulphide mineralization, occurs at the Pampa Negra and Candelaria projects, related to porphyritic intrusions and associated supergene manto horizons that are covered by the Property Royalty or by the AOI Royalty. Furthermore, early-stage exploration targets at San Jose (with drilling), and Justicia prospect areas (no drilling) show evidence of porphyry-style mineralization with some evidence for oxidation of primary sulphides. These deposits provide upside potential for processing at the existing Chapi plant subject to further drilling, engineering, and permitting.
Chapi Restart Plans
Quilla’s near-term plan is to restart Chapi Mine operations utilizing the SX-EW process circuit which is designed to produce a nominal 10,000 tonnes per annum of copper cathode, with the option to potentially increase capacity in the future. Initially, the restart plan is contingent on additional drilling and metallurgical test work, updated resource and reserve modelling, rehabilitation of the mining and leach-processing infrastructure, and updated environmental and other permits. Quilla and MPC have raised the necessary capital to complete the Chapi restart program, and anticipate initial production in H1 2026.
Comments on Mines and Districts in the Region. The mines and districts in the region of the Chapi Mine property, which include Cerro Verde and the Cuajone-Quellaveco-Toquepala cluster, provide geological context for EMX’s Chapi royalty property. However, this is not necessarily indicative that the Chapi royalty property hosts similar styles, grades, or tonnages of mineralization.
Comments on Chapi Background, Geology, and Exploration Upside. EMX has not verified the historical information and data from the previous Chapi operators, but believes this information and data to be reliable and relevant. Updated information and data will result from Quilla’s restart program technical work.
Dean D. Turner, CPG, a Qualified Person as defined by National Instrument 43-101 and consultant to the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
About EMX – EMX is a precious and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”. Please see www.EMXroyalty.com for more information.
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
Forward-Looking Statements
This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
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 quarter ended September 30, 2024 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov.
Figure 1. EMX’s Chapi royalty property and AOI, southeast Peru.
1 Background and production information taken from internal, proprietary reports and documents by historical operators, as well as “Memoria Anual” reports filed with the Peruvian government by historical operator Compañia Minera Milpo S.A.A.
2 Geology and exploration upside taken from EMX’s due diligence field review and review of internal, proprietary reports and documents from historical operators, as well as “Memoria Anual” reports filed with the Peruvian government by historical operator Compañia Minera Milpo S.A.A.
Uranium Market Steadies: While the spot price declined in November, the overall price environment for the year has strengthened. Additionally, uranium miners gained for the month while remaining flat year-to-date.
Nuclear Energy Continues to Gain Momentum: Global support continues to grow as more countries pledged to triple global nuclear capacity by 2050 at COP29.
Implications After U.S. Election: The Trump presidency is likely to continue with a pro-nuclear stance, focusing on nuclear energy’s contributions to energy independence, national security and economic competitiveness.
Energy Strategy Remains Critical: With Trump’s plan likely to prioritize domestic energy production, the stance on international uranium imports, mainly from Russia and China, will be a critical area to watch.
Russian Ban Disrupts Supply Chain: Uranium supply faces pressure as Russia accounts for approximately 44% of global uranium enrichment capacity and 35% of U.S. enrichment imports. In sharp contrast, Russia only accounts for 5% of the global U3O8 supply.
*Performance for periods under one year is not annualized. Sources: Bloomberg and Sprott Asset Management LP. Data as of 11/30/2024. You cannot invest directly in an index. Included for illustrative purposes only. Past performance is no guarantee of future results.
Year-End Overhang on Uranium Spot Market
The uranium spot price retraced to support at $77.08 per pound at the end of November, which resulted in a 3.61% loss.1 The loss disguises a stronger price environment in the spot market for the year, with the minimum, average and maximum spot prices year-to-date at the highest levels compared to recent years (Figure 1). Given the growing sensitivity to geopolitical factors, we believe the uranium price will continue to behave in this staircase-like pattern over the intermediate term with short-term bouts of volatility. By contrast, uranium miners gained 1.18% in November and are flat year-to-date.
Uranium’s stairstep rally continues: spot prices soften, but term prices surge to 16-year highs.
Uranium miners have played catchup to the physical commodity and outperformed in 2024, a reversal of last year’s trend. Notably, uranium miners predominantly contract in the term market instead of the spot market and are therefore supported by term prices hitting 16-year highs. These term contracts also contain floors and ceilings, which continue to rise and are reported to be increasing with floor prices in the $70s and ceilings in the $130s (before escalation), indicating a midpoint of a triple-digit uranium price. Similarly, conversion and enrichment prices are at all-time highs, underscoring the strength of uranium’s current market dynamics.
The spot market is dealing with an overhang of supply as some traders look to clear their positions before the year’s end. Further pressuring the spot market are rampant rumors the Kazakh ANU physical uranium fund may be liquidating its 2+ million-pound inventory. While Russia’s retaliatory export ban on enriched uranium to the U.S. pushes utilities’ focus to the nuclear fuel cycle’s conversion and enrichment segments, we believe this attention will eventually cascade down to uranium oxide (U3O8). This year’s muted term contracting activity, at 100.7 million pounds of U3O8e, was heavily skewed by Chinese contracts with Kazatomprom and increases the likelihood of future contracting, as deferred purchases will eventually need to be addressed. Delaying these purchases risks depleting existing stockpiles, which is an unsustainable scenario from a risk management perspective.
Figure 1. Historical Physical Uranium Spot Prices
Source: UxC LLC. As of 11/30/2024.
Global Support for Nuclear Energy Continues to Grow
Meanwhile, global support for nuclear energy continues to gain momentum. At COP29, six additional countries pledged to triple global nuclear capacity by 2050, bringing the total to 31 nations committed to this ambitious goal.6 COP conferences and global forums for climate action highlight nuclear energy’s role in achieving net-zero emissions and meeting growing electricity demand.
On a regional level, positive news flows further bolster the case for nuclear power. Taiwan’s premier recently announced consideration of nuclear power to address energy needs tied to AI-driven electricity demand.7 Taiwan’s significance in this context is amplified by its position as a global leader in semiconductor manufacturing, in which advanced chips are critical for AI development, making a reliable and scalable electricity supply essential to maintain its competitive edge in this high-demand industry. Vietnam, too, is signaling a nuclear pivot, revising its national power development plan to incorporate nuclear options alongside renewables.8 The goal is to expand power generation capacity by 12-15% annually and support annual economic growth of 7%. As global electricity demand intensifies, we believe nuclear power and, by extension, uranium stand poised to be key enablers of this next growth phase, particularly in emerging markets.
On an individual level, sentiment toward nuclear energy continues to improve, with a study finding that 1.5X more people support nuclear energy’s use than oppose it. Commissioned and analyzed by the Radiant Energy Group, the Public Attitudes Toward Clean Energy (PACE) index is the “world’s largest publicly released international study on what people think about nuclear energy.” Figure 2 shows that across the 20 countries surveyed, 28% of respondents oppose nuclear energy, while 46% support it, and 17 of the 20 countries had net support for nuclear energy. Further, the results found that nuclear energy was the second most preferred clean energy electricity source, after solar.
Figure 2. Public Attitudes Toward Nuclear Energy in 2023
U.S. Election and Potential Implications for the Nuclear Sector
The recent U.S. presidential election, which saw Donald Trump win the presidency along with Republican control of the Senate and the House of Representatives, will likely impact some elements of U.S. energy policy. It is important to note the Biden administration has been incredibly pro-nuclear for a Democratic government.
A second Trump administration is anticipated to maintain a pro-nuclear stance, though with motivations distinct from those of the Biden administration. While Democrats have emphasized nuclear energy as a cornerstone of their climate change strategy, Republicans are expected to champion it for its role in bolstering energy independence, enhancing national security, and driving economic competitiveness. Key industry initiatives that align with these priorities include expanding domestic uranium mining, simplifying nuclear permitting processes, and advancing innovative technologies like Small Modular Reactors (SMRs).
Bipartisan backing keeps U.S. nuclear strong, but policy shifts under Trump could reshape priorities.
Significant legislation, such as the Bipartisan Infrastructure Law (BIL), the Inflation Reduction Act (IRA), and the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act (ADVANCE Act), has provided substantial financial backing for nuclear projects, receiving broad bipartisan support. While some aspects of this legislation may undergo revision, we believe nuclear energy will continue to garner strong support. Notably, the fact that many IRA-driven projects are located in Republican-led states suggests that key components of these policies are likely to remain intact (Figure 3).
Trump’s energy strategy is expected to prioritize domestic energy production, including oil, gas and nuclear power, while potentially pulling back on climate-focused policies such as the Paris Agreement and offshore wind development. At the same time, the administration’s stance on international enriched uranium imports, mainly from Russia and China, will be a critical area to watch. Recent bipartisan legislation banning Russian enriched uranium imports, the Prohibiting Russian Uranium Imports Act (PRUIA), and calls for increased tariffs signal ongoing efforts to strengthen the U.S. domestic fuel cycle.
We believe the nuclear sector will continue to benefit from ongoing bipartisan support; however, potential shifts in policy priorities under a new Trump administration introduce uncertainty regarding the scale and direction of federal support. This uncertainty has contributed to the recent weakness in some clean energy sectors like renewables and electric vehicles.
Figure 3.
Source: https://www.ciphernews.com/articles/why-cleantech-is-booming-in-gop-led-states/. Clean Investment Monitor, Rhodium Group and MIT CEEPR. • Total announced investments range from Q3 2022 through Q2 2024. States are grouped as Republican, Democrat or Swing based on how they voted in the 2020 general election. Energy and Industry category includes the deployment of wind, solar, battery, geothermal, clean hydrogen, carbon management, sustainable aviation fuels and other electricity technologies. Manufacturing category refers to the production of these clean technologies.
Russia’s Retaliatory Restrictions on Enriched Uranium Exports
In November, Russia imposed restrictions on its enriched uranium exports to the U.S.9 The ban is seen as a “tit-for-tat” response to the U.S.’s Prohibiting Russian Uranium Imports Act, which came into effect in August. The PRUIA banned Russian-enriched uranium imports to the U.S. However, utilities may apply for waivers that authorize the importation of uranium to certain aggregate limits and up until the end of 2027 if the Secretary of Energy determines that there is no alternative viable source of uranium to sustain the continued operation of a U.S. nuclear reactor or if the importation of Russian-produced uranium is in the national interest.
Russia’s retaliation has imposed a more immediate threat to the industry as uncertainty on the timing and scale of escalatory actions grows. At the same time, the West is working on expanding enrichment capacity. Russia’s restrictions have already created ripple effects, with uranium stocks climbing given concerns about supply disruptions. Russia accounts for approximately 44% of global uranium enrichment capacity and 35% of U.S. enrichment imports. In sharp contrast, Russia only accounts for 5% of the global U3O8 supply (Figure 4).
The timing of Russia’s restrictions poses a critical challenge. Western countries are still in the process of expanding their enrichment capacities, and these facilities will not be fully operational for several years. This leaves the nuclear fuel supply chain vulnerable to further disruptions, as Russia’s decision to withhold enriched uranium could potentially outpace Western efforts to establish an alternative supply.
This urgency has also accelerated shifts in enrichment practices. Western utilities are moving from underfeeding to overfeeding, requiring more raw uranium to compensate for reduced enrichment capacity. We believe this shift is expected to support uranium prices and increase demand in the coming years. Whether these measures can bridge the gap before Russia’s actions exert broader impacts remains a pivotal question for the nuclear energy sector.
Figure 4. Russia’s (Rosatom) Market Shares in Enrichment and Conversion
Source: WNA Nuclear Fuel Report 2023.
Kazakhstan and Niger Add to Supply Uncertainty
Kazatomprom, the world’s largest uranium supplier, has finalized a major agreement with China’s CNNC and China National Uranium Corporation for the sale of uranium concentrates. Combined with previous transactions involving these entities, the deal represents over 50% of Kazatomprom’s total book value, highlighting Kazakhstan’s deepening ties with Eastern markets. This agreement builds on a similar large-scale transaction with a Chinese utility in late 2023 and aligns with broader regional developments, including the construction of a massive trading hub and storage facility (with a capacity of approximately 60 million pounds) near the Kazakh-China border.
For Western utilities, this shift raises significant concerns. With an increasing portion of Kazatomprom’s supply being directed to China and Russia, Western buyers are under growing pressure to secure alternative uranium sources. These challenges are further exacerbated by Kazatomprom’s ongoing production difficulties, including weaker-than-expected output reported in Q3 2024. The combination of production constraints and shifting supply priorities underscores the urgent need for Western utilities to diversify their supply chains and mitigate potential risks to their energy security.
Niger, previously the seventh largest producer of uranium, has seen its production capabilities and stability unravel following a military coup in July 2023. The military junta has distanced itself from traditional Western allies like France and the U.S., forging closer ties with Russia and China. The political upheaval has severely impacted uranium operations in Niger. Most recently, on December 4, the French nuclear firm Orano confirmed the loss of operational control of SOMAÏR in Niger.10 This follows the previous announcement on October 23 that Niger’s growing financial difficulties forced it to suspend operations at the mine.11
As a result of the coup, Orano has been unable to export uranium, and a total of 1,150 tonnes of uranium concentrate from 2023 and 2024 stocks haven’t been exported, according to Orano.12 This is worth about $210 million. Additionally, Niger has revoked mining licenses for key projects, such as Orano’s Imouraren and Canada-based GoviEx’s Madaouela, signaling a shift in the country’s resource management strategy.
Despite these setbacks, some projects remain. Two uranium projects, the SOMINA Azelik project and Global Atomic’s Dasa project, are slated to commence production in the coming years. However, the nationalization of key assets and closer ties with Russia suggest that future uranium output may be increasingly directed away from Western markets.
Junior Uranium Miners Helping to Address Supply Shortfalls
The shifting and uncertain dynamics of the global uranium supply underscore the urgent need to boost production through mine restarts and new developments. Junior uranium miners are playing a pivotal role in addressing this supply gap, with many resuming operations at previously idled mines to bring production back online (Figure 5). These projects are crucial for maintaining a stable uranium supply to Western utilities amid escalating geopolitical risks and dwindling access to traditional sources. By leveraging existing infrastructure, mine restarts can deliver uranium more quickly and cost-effectively than greenfield developments. Their success is essential to mitigating supply chain vulnerabilities and ensuring the long-term sustainability of the nuclear fuel cycle.
Junior uranium miners drive supply security, with quick restarts and new landmark projects like NexGen’s Rook I.
New uranium mines are poised to be vital in ensuring longer-term supply security. NexGen Energy Ltd. (NexGen) is a prominent junior uranium mining company developing the world’s largest single-source deposit of high-grade, low-cost uranium. Its renowned Rook 1 Project is situated in the Athabasca Basin in Saskatchewan, Canada. This location places it within one of the world’s top mining jurisdictions, known for its prolific uranium resources. The company boasts substantial uranium resources, totaling 337 million pounds. When NexGen had previously achieved provincial environmental approval, it marked the first uranium mine in Saskatchewan to reach this stage in over 20 years. The company projects a potential production output of up to 28.8 million pounds by 2030 and beyond.
NexGen’s recent progress with its flagship Rook I Project in Saskatchewan highlights the potential of junior uranium miners. The company recently reached a significant Rook I milestone, with the successful completion of the final federal technical review.13 This paves the way for the final steps of the approval process, including a Commission Hearing that could lead to a project approval decision.
NexGen has also taken significant strides toward commercializing its project by securing its first uranium sales contracts with leading U.S. utilities. These agreements cover the delivery of 5 million pounds of U3O8 over five years (2029–2033), with pricing mechanisms tied to market conditions. Notably, the contracts feature floor and ceiling prices of approximately $79 and $150 per pound, respectively, reflecting robust demand and favorable market conditions.14 It is important to highlight the contract ceiling price is notably higher than levels recently quoted by Cameco, which we believe reflects the strong market appetite for new sources of Western supply.
Figure 5. Uranium Supply Pipeline
Source: Mike Kozak, Uranium Analyst, Cantor Fitzgerald, September 2024. Company websites and UxC LLC. Assumes certain mines will be restarted that have yet to be announced. 2024-2027 is forecasted information from Cantor Fitzgerald’s report.
What to Make of Market Signals?
We believe the recent correction in the spot uranium price and the miners may represent an attractive entry point in the ongoing bull market. While the softness in the spot market over the past few months has been frustrating and confusing to watch, we believe it is sending a false signal given that the long-term fundamentals have only improved. Operational challenges appear to be getting worse, which will keep supply conditions tight, while the nuclear fuel supply chain remains highly susceptible to disruptions. Key producers remain steadfast in their supply discipline strategy and there appears to be a market standoff. Utilities are balking at the significant move in uranium prices over the past year, which will impact their future operating budgets, while producers are capitalizing on their long-awaited market leverage over utilities. As Cameco often repeats, utilities can “delay and defer,” but they will eventually be forced to buy.
Uranium supply deficits, tight market conditions and rising demand signal long-term strength.
A longstanding primary supply deficit and renewed interest in nuclear energy highlight the real challenges to bring the market back into balance. We believe this bull market has further room to run with no meaningful new supply on the horizon for three to five years. While last year’s multi-year record in long-term uranium contracting was celebrated, the overall numbers disguise a bifurcated market. Some utilities are well covered, while others have ignored the powerful market signals and failed to adapt their procurement strategies to the new market realities.
With global uranium mine production well short of the world’s uranium reactor requirements, the supply deficit building over the next decade, and near-term supply inhibited by long lead times and capital intensity, we believe that restarts and new mines in development are critical. The uranium price target as an incentive level for further restarts and greenfield development is a moving target, and we believe that we will need higher uranium prices to incentivize enough production to meet forecasted deficits. Over the long term, increased demand in the face of an uncertain uranium supply may continue supporting a sustained bull market (Figure 6).
Note: A “bull market” refers to a condition of financial markets in which prices are generally rising. A “bear market” refers to a condition of financial markets in which prices are generally falling. Source: TradeTech Data as of 11/30/2024. TradeTech is the leading independent provider of uranium prices and nuclear fuel market information. The uranium prices in this chart dating back to 1968 is sourced exclusively from TradeTech; visit https://www.uranium.info/.
Footnotes
1
The U3O8 uranium spot price is measured by a proprietary composite of U3O8 spot prices from UxC, S&P Platts and Numerco.
2
The North Shore Global Uranium Mining Index (URNMX) was created by North Shore Indices, Inc. (the “Index Provider”). The Index Provider developed the methodology for determining the securities to be included in the Index and is responsible for the ongoing maintenance of the Index. The Index is calculated by Indxx, LLC, which is not affiliated with the North Shore Global Uranium Miners Fund (“Existing Fund”), ALPS Advisors, Inc. (the “Sub-Adviser”) or Sprott Asset Management LP (the “Adviser”).
3
The Nasdaq Sprott Junior Uranium Miners™ Index (NSURNJ™) was co-developed by Nasdaq® (the “Index Provider”) and Sprott Asset Management LP (the “Adviser”). The Index Provider and Adviser co-developed the methodology for determining the securities to be included in the Index and the Index Provider is responsible for the ongoing maintenance of the Index.
4
The Bloomberg Commodity Index (BCOM) is a broadly diversified commodity price index that tracks prices of futures contracts on physical commodities, and is designed to minimize concentration in any one commodity or sector. It currently has 23 commodity futures in six sectors.
5
The S&P 500 or Standard & Poor’s 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies.
Vancouver, British Columbia–(Newsfile Corp. – December 9, 2024) – Riverside Resources Inc.(TSXV: RRI) (OTCQB: RVSDF) (FSE: 5YY) (“Riverside” or the “Company”), is pleased to announce it has signed an option agreement to acquire a 100% interest in the Taft Project (“Project”). The Project covers a total area of 3,000 hectares (30 km2) and is located in the highly prospective Revelstoke Carbonatite Belt region of British Columbia for Rare Earth Elements (REE) and gold mineralization. This transaction aligns with Riverside’s strategy of targeting high-value mineral assets in favorable jurisdictions and taking advantage of government support led by technical quality as a focus. Critical metals, such as rare earth elements (REE), are essential for national security and economic prosperity and Riverside is actively strengthening its position by acquiring and staking high-potential critical metals projects. The Company plans to begin a field program on the Project immediately.
“Riverside Resources has a long history of identifying and acquiring high-potential mineral assets in stable jurisdictions, and the Taft Project is another excellent example of this approach,” stated John-Mark Staude, President and CEO of Riverside Resources. “As the demand for critical minerals continues to grow, particularly in the fields of renewable energy, electric vehicles, and advanced technologies, projects like Taft play an essential role in securing North America’s access to these vital resources.”
“With governments increasingly emphasizing the importance of developing domestic supply chains for critical minerals, including recent initiatives by the United States and Canada to support exploration and production, Riverside is proud to contribute to this strategic imperative. By acquiring and investing in projects like Taft, we are not only enhancing our portfolio but also progressing the global transition to cleaner energy and more resilient supply networks.”
Project Option Terms:
As per the Agreement, Riverside can earn a 100% interest in the Taft Project by making staged cash payments totaling CAD $125,000 over five years, as detailed below:
a) $15,000 upon signing of the Agreement; (paid) b) $15,000 on or before the 1st anniversary of the Effective Date; c) $20,000 on or before the 2nd anniversary of the Effective Date; d) $20,000 on or before the 3rd anniversary of the Effective Date; e) $25,000 on or before the 4th anniversary of the Effective Date; and f) $30,000 on or before the final anniversary of the Effective Date.
Additionally, Riverside will commit to a minimum of $320,000 in exploration expenditures over the same period, as detailed below:
a) $ 60,000.00 on or before the 1st anniversary of the Effective Date; b) $ 60,000.00 on or before the 2nd anniversary of the Effective Date; c) $ 60,000.00 on or before the 3rd anniversary of the Effective Date; d) $ 60,000.00 on or before the 4th anniversary of the Effective Date; and e) $ 80,000.00 on or before the final anniversary of the Effective Date.
This transaction involves no royalties, aligning with Riverside’s ongoing commitment to maintaining royalty-free projects. Consistent with its business model over the past 15+ years, Riverside creates royalties only when optioning or selling projects to third parties in future business transactions.
Exploration Plans
The exploration program will begin with stream geochemistry studies initiated this summer, followed by soil and rock geochemical prospecting. Fieldwork will include geological mapping and reconnaissance traverses, building on earlier government studies and prior prospector reports. The focus is to delineate the Rare Earth Element potential associated with carbonatite intrusions, which are key mineralization targets for both the property and the company within this belt. Additionally, the program will investigate gold anomalies identified in initial surveys, building on previous exploration efforts in the area. Riverside’s planned investments include geological mapping, sampling, and targeted drilling to further define the resource potential of the project.
About the Taft Project
The Taft Project presents a high-potential opportunity to discover critical mineral resources essential to the increasing demand for renewable energy, technology, and advanced materials. Its favorable geological setting and strategic location within a supportive jurisdiction highlight its importance in Riverside’s portfolio. Geological mapping of the REE-rich terrane has identified promising areas along the belt, supported by favorable geochemistry and indicator minerals. Current sampling and exploration efforts, in collaboration with local prospectors, aim to refine targets through access, sampling, and mapping. These activities are paving the way for a focused exploration program in 2025, targeting both REE and gold zones.
Figure 1: Location map and mineral concession map with tenure under option in red and Riverside 100% owned tenure in yellow.
The scientific and technical data contained in this news release was reviewed and approved by Freeman Smith, P.Geo, a non-independent qualified person to Riverside Resources who is responsible for ensuring that the information provided in this news release is accurate and who acts as a “qualified person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
About Riverside Resources Inc.:
Riverside is a well-funded exploration company driven by value generation and discovery. The Company has over $5M in cash, no debt and less than 75M shares outstanding with a strong portfolio of gold-silver and copper assets and royalties in North America. Riverside has extensive experience and knowledge operating in Mexico and Canada and leverages its large database to generate a portfolio of prospective mineral properties. In addition to Riverside’s own exploration spending, the Company also strives to diversify risk by securing joint-venture and spin-out partnerships to advance multiple assets simultaneously and create more chances for discovery. Riverside has properties available for option, with information available on the Company’s website at www.rivres.com.
ON BEHALF OF RIVERSIDE RESOURCES INC.
“John-Mark Staude”
Dr. John-Mark Staude, President & CEO
For additional information contact:
John-Mark Staude President, CEO Riverside Resources Inc. info@rivres.com Phone: (778) 327-6671 Fax: (778) 327-6675 Web: www.rivres.com
Eric Negraeff Investor Relations Riverside Resources Inc. Phone: (778) 327-6671 TF: (877) RIV-RES1 Web: www.rivres.com
Certain statements in this press release may be considered forward-looking information. These statements can be identified by the use of forward-looking terminology (e.g., “expect”,” estimates”, “intends”, “anticipates”, “believes”, “plans”). Such information involves known and unknown risks — including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Riverside in its public securities filings that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
