Proven ProbableCategory: Project Generators
Vancouver, British Columbia–(Newsfile Corp. – September 18, 2024) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX“) is pleased to announce the appointment of Mr. Stefan L. Wenger as Chief Financial Officer effective October 1, 2024. Mr. Wenger was previously the Chief Financial Officer and Treasurer of Royal Gold, Inc., one of the mining industry’s leading royalty companies, from 2006 to 2018. Prior to becoming Royal Gold’s CFO, Mr. Wenger was the Chief Accounting Officer from 2003 to 2006. During his tenure, Royal Gold grew its portfolio from 14 to 188 royalties, while annual revenues increased from US$15 million to US$459 million. Before Royal Gold, Mr. Wenger had begun his career as an auditor with Arthur Andersen. Mr. Wenger holds a Bachelor of Science degree in Business Administration from Colorado State University, has completed the General Management Program at the Harvard Business School, and is a Certified Public Accountant.
In addition to Mr. Wenger’s new role as CFO, and as part of the Company’s optimization of corporate responsibilities, Mr. Douglas Reed has transitioned from CFO to become EMX’s Chief Accounting Officer and Mr. Ryan Hindmarch, currently Corporate Controller, has been appointed as the Director of Finance. The Company is excited to have Mr. Wenger onboard, as well as for the appointment of Mr. Reed and Mr. Hindmarch to their new positions, and looks forward to their collective contributions fostering EMX’s growth and shareholder value creation.
On the effective date, as part of his appointment Mr. Wenger will receive 50,000 incentive stock options and 50,000 restricted shares units (RSUs) as part of his CFO compensation package. The options vest on the date of grant, will have a term of 5 years to expiry, and will have an exercise price equal to the closing price of the Company’s common shares on the TSX-Venture Exchange as of the day prior October 1, 2024; and the RSUs will vest after 12 months from the grant date.
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:
David M. Cole
President and CEO
Phone: (303) 973-8585
Dave@EMXroyalty.com
Isabel Belger
Investor Relations
Phone: +49 178 4909039
IBelger@EMXroyalty.com
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, but which 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 the Company being unable to comply with the covenants under the Credit Agreement, including the repayment of any amounts owing under the Loan, 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 June 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/223686
Vancouver, British Columbia–(Newsfile Corp. – September 10, 2024) – Riverside Resources Inc. (TSXV: RRI) (OTCQB: RVSDF) (FSE: 5YY) (“Riverside” or the “Company”), is pleased to announce the core drilling company and related equipment has arrived at the Cecilia Project (“Project”) in Sonora, Mexico. Drilling will commence for the planned 2,500m, 8 drill hole program and will initially test 3 target areas at the Project. All funding with partner Fortuna Mining is in place and permits are in hand to carry forward this next phase of gold – silver exploration.
Drill Program Highlights
- 2,500m planned drill program for a total of 8 holes
- Drilling Cerro Magallanes breccia and dome margin with the potential to drill through the dome if warranted
- Drilling East target where former small scale mine workings and adits move along 4 sub-parallel vein structures of quartz containing silver grades up to over 250 g/t Ag (June 6, 2017 press release)
- Myra vein targets will be the first of several Mesa targets to be drilled and tested beneath an area that returned surface channel vein samples of up to 3 g/t Au (October 2, 2018 press release)
- If meters allow, to drill the Mesa Fault target along the southeast portion of the Cecilia district tenure where past chip sampling has returned gold values up to 4 g/t Au (September 21, 2020 press release)
- Budget of USD$800,000 for this phase of drilling
“We are excited to begin the drill program at the Cecilia project with our partner Fortuna Mining,” stated John-Mark Stude, CEO of Riverside Resources. “We announced the agreement with Fortuna Mining in March and have spent the past six months incorporating the results from a recent airborne magnetic survey and extensive geochemistry and mapping into our past project databases and have designed an initial drill program to test three of the highly prospective targets for the project. Concurrent to the commencement of this drill campaign, our teams will collaborate on a plan to define at least four other targets in anticipation of a follow-on drill campaign as well as potential follow up drilling on these initial three. The team at Riverside has spent several years methodically advancing exploration programs at the Cecilia Project and working with a strong partner like Fortuna Mining helps take this project through the next stage of exploration and hopefully towards a major discovery.”
During the recent summer field season the exploration targets were advanced with the results from a broader property-wide airborne magnetic survey which covered the complete property being integrated with an earlier detailed magnetic survey of the central Cerro Magallanes putting it into context with the full 80 km² project area. The drill program will begin with core drill testing of the Agua Prieta Breccia target on the east side of the Magallanes Dome along the contact zone of the rhyodacite dome and volcanic tuffs. The plan is to drill an angle hole up to 800m to cross the breccia features where surface gold mineralization has returned up to > 1 ounce / ton gold (September 21, 2020 press release) and shallow drill holes of 24.2m @ 1.51 g/t Au (April 15, 2021 press release) (Riverside, CED-21-005, 2021) have been intersected.
Figure 1: Geologic map with targets for Cecilia Project
Figure 2: Assay samples from this current summer 2024 field program with purple >1g up to 13 g/t Au. Labeled samples selected higher grade assays clustering in target areas shown on geologic map Figure 1.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6101/222749_dc60da2a64dfeb82_0001full.jpg
About the Cecilia Project:
Riverside Resources has undertaken comprehensive exploration efforts at the property, including drilling activities that have yielded significant gold intercepts. Notably, drill results have intersected near surface promising intercepts such as 24.2m @ 1.51 g/t Au (April 15, 2021 press release) within the rhyodacite dome, showcasing the property’s gold at shallow depths which also has been mined in over a dozen locations including some substantial small scale underground prospect mining. Further drill planning will look to explore for potential larger high grade targets at depths along these intercepts.
One distinguishing aspect of this project is the potential to preserve a fertile dome system. The Magallanes Target, situated at the central part of the project, exhibits interaction within extensive NE and NW structures, presenting a compelling opportunity for the discovery of epithermal gold-silver style mineralization and breccias at the margin of the dome and potentially inside feeder structures as breccia pipes in the dome. This geological scheme of the Cecilia Project resembles the Tertiary-age rhyolite systems, like the La Pitarrilla Ag-Pb-Zn project (~800M oz AgEq*) and Fresnillo’s San Julian Ag-Au Mine (~350M oz AgEq**), both situated in Durango, Mexico in the similar Sierra Madre Volcanic Province to Cecilia.
*Mineral Resource estimate for the Pitarrilla Ag Pb Zn Project, Durango, Mexico, SSR Mining, March, 2023.
**Obtained from Fresnillo public presentation, Hermosillo, October, 2016.
Qualified Person & QA/QC:
The scientific and technical data contained in this news release pertaining to the Cecilia Project was reviewed and approved by Freeman Smith, P.Geo, a non-independent qualified person to Riverside Resources focusing on the work in Sonora, Mexico, 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. The resource information for SSR Mining and Fresnillo is from their corporate public disclosure and has not been reviewed by Riverside Qualified Person.
Samples from the exploration program discussed above at the Cecilia Project were taken to the Bureau Veritas Laboratories in Hermosillo, Mexico for fire assaying for gold. The rejects remained with Bureau Veritas in Mexico while the pulps were transported to Bureau Veritas laboratory in Vancouver, BC, Canada for 45 element ICP/ES-MS analysis using 4-acid digestion methods. A QA/QC program was implemented as part of the sampling procedures for the exploration program. Standard samples were randomly inserted into the sample stream prior to being sent to the laboratory.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/222749
Kelowna, British Columbia–(Newsfile Corp. – September 10, 2024) – F3 Uranium Corp (TSV: FUU) (OTCQB: FUUFF) (“F3” or “the Company“) is pleased to announce scintillometer results from the current summer drill program, including PLN24-176 which was cored in the JR Zone and which returned mineralization over 11.0m, including 5.40m of high grade (>10,000 cps) containing 4.35m of composite off-scale mineralization (>65,535 cps).
Sam Hartmann, Vice President Exploration, commented:
“PLN24-176 was planned to increase confidence and high-grade continuity in the heart of the JR Zone, approximately 15m in the up-dip direction of PLN24-137 (see NR April 1, 2024 and July 20, 2024). Based on total radioactivity and the intercepted width of high grade, we expect this hole to rank near the top of all drillholes at JR. Exploration remains the focus of the program; previously (see NR August 13, 2024) we announced PLN24-168, which stepped out 700m along strike and encountered the altered and strongly graphitic B1 shear well below the Athabasca Unconformity. PLN24-175 was a follow up, testing the same structure 110m up-dip targeting its intersection with the unconformity. This hole intersected strong alteration in the basement; coupled with intense silicification and brecciation observed in the lower Athabasca Sandstone and the lack of graphitic structure in the basement, indications are that the structure dips steeper than presumed. This reveals a new target down-dip from PLN24-175 and an additional hole is planned to test the structure in this area with these prospective signs for nearby mineralization.”
Summer 2024 JR Zone Handheld Spectrometer Highlights:
PLN24-176 (line 035S):
- 11.0m interval with mineralization between 186.0 and 206.5m, including
- 4.35m composite off-scale radioactivity (> 65,535 cps) between 197.40m and 202.15m
PLN24-177 (line 070S):
- 13.0 interval with mineralization between 199.0 and 214.5m, including
- 0.20m high-grade radioactivity (> 10,000 cps) between 211.0 and 211.2m
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8110/222573_7ebc035d04f7a8f9_002full.jpg
Table 1. Drill Hole Summary and Handheld Spectrometer Results
| Collar Information | * Hand-held Spectrometer Results On Mineralized Drillcore (>300 cps / >0.5m minimum) | Athabasca Unconformity Depth (m) | Total Drillhole Depth (m) | |||||||||
| Hole ID | Section Line | Easting | Northing | Elevation | Az | Dip | From (m) | To (m) | Interval (m) | Max CPS | ||
| PLN24-169 | 2820S | 589486.4 | 6408554.4 | 529.6 | 113.3 | -70.5 | B1 MSZ Exploration; no radioactivity >300 cps | 170.4, 256.3, 324.2 | 404 | |||
| PLN24-170 | 150S | 587940.0 | 6410725.8 | 546.3 | 58.4 | -84.6 | A1 Exploration; no radioactivity >300 cps | 172.3 | 263 | |||
| PLN24-171 | 3345S | 589633.1 | 6408012.6 | 535.4 | 54.7 | -65.6 | B1 MSZ Exploration; no radioactivity >300 cps | 353.0 | 674 | |||
| PLN24-172 | 3780S | 590006.3 | 6407749.4 | 539.2 | 55.8 | -65.1 | B1 MSZ Exploration; no radioactivity >300 cps | 361.8 | 524 | |||
| PLN24-173 | 2850S | 589230.3 | 6408338.0 | 536.9 | 54.5 | -67.1 | A1 Exploration; no radioactivity >300 cps | 173.4 | 587 | |||
| PLN24-174 | 3075S | 589596.1 | 6408116.4 | 532.7 | 14.6 | -57.8 | B1 MSZ Exploration; no radioactivity >300 cps | 376.4 | 398 | |||
| PLN24-175 | 4245S | 590242.5 | 6407347.5 | 542.8 | 55.8 | -66.7 | B1 MSZ Exploration; no radioactivity >300 cps | 351.2 | 497 | |||
| PLN24-176 | 035S | 587813.4 | 6410772.8 | 545.9 | 55.8 | -80.8 | 186.00 | 186.50 | 0.50 | 300 | 181.8 | 296 |
| 193.50 | 194.00 | 0.50 | 300 | |||||||||
| 194.00 | 195.50 | 1.50 | <300 | |||||||||
| 195.50 | 196.00 | 0.50 | 320 | |||||||||
| 196.00 | 196.50 | 0.50 | 1100 | |||||||||
| 196.50 | 197.00 | 0.50 | 1200 | |||||||||
| 197.00 | 197.40 | 0.40 | 55500 | |||||||||
| 197.40 | 197.50 | 0.10 | >65535 | |||||||||
| 197.50 | 198.00 | 0.50 | >65535 | |||||||||
| 198.00 | 198.50 | 0.50 | >65535 | |||||||||
| 198.50 | 199.00 | 0.50 | >65535 | |||||||||
| 199.00 | 199.50 | 0.50 | >65535 | |||||||||
| 199.50 | 200.00 | 0.50 | >65535 | |||||||||
| 200.00 | 200.50 | 0.50 | >65535 | |||||||||
| 200.50 | 200.70 | 0.20 | >65535 | |||||||||
| 200.70 | 201.00 | 0.30 | 45500 | |||||||||
| 201.00 | 201.10 | 0.10 | 63600 | |||||||||
| 201.10 | 201.50 | 0.40 | >65535 | |||||||||
| 201.50 | 202.00 | 0.50 | >65535 | |||||||||
| 202.00 | 202.15 | 0.15 | >65535 | |||||||||
| 202.15 | 202.40 | 0.25 | 50200 | |||||||||
| 202.40 | 202.50 | 0.10 | 8700 | |||||||||
| 202.50 | 203.00 | 0.50 | 1600 | |||||||||
| 203.00 | 203.50 | 0.50 | 1900 | |||||||||
| 206.00 | 206.50 | 0.50 | 320 | |||||||||
| PLN24-177 | 70S | 587813.4 | 6410742.8 | 547.3 | 55.9 | -81.3 | 199.00 | 199.50 | 0.50 | 340 | 179.4 | 269 |
| 199.50 | 200.00 | 0.50 | 480 | |||||||||
| 200.00 | 200.50 | 0.50 | 400 | |||||||||
| 200.50 | 201.00 | 0.50 | 460 | |||||||||
| 201.00 | 201.50 | 0.50 | 670 | |||||||||
| 201.50 | 202.00 | 0.50 | 800 | |||||||||
| 202.00 | 202.50 | 0.50 | 1900 | |||||||||
| 202.50 | 203.00 | 0.50 | 1900 | |||||||||
| 203.00 | 203.50 | 0.50 | 1600 | |||||||||
| 203.50 | 204.00 | 0.50 | 900 | |||||||||
| 204.00 | 204.50 | 0.50 | <300 | |||||||||
| 204.50 | 205.00 | 0.50 | 2000 | |||||||||
| 205.00 | 205.50 | 0.50 | 410 | |||||||||
| 208.00 | 208.50 | 0.50 | 1300 | |||||||||
| 208.50 | 209.00 | 0.50 | 610 | |||||||||
| 209.00 | 209.50 | 0.50 | <300 | |||||||||
| 209.50 | 210.00 | 0.50 | 360 | |||||||||
| 210.00 | 210.50 | 0.50 | 780 | |||||||||
| 210.50 | 211.00 | 0.50 | 3800 | |||||||||
| 211.00 | 211.20 | 0.20 | 12500 | |||||||||
| 211.20 | 211.50 | 0.30 | 5100 | |||||||||
| 211.50 | 212.00 | 0.50 | 1600 | |||||||||
| 212.00 | 212.50 | 0.50 | 300 | |||||||||
| 212.50 | 214.00 | 1.50 | <300 | |||||||||
| 214.00 | 214.50 | 0.50 | 300 | |||||||||
Handheld spectrometer composite parameters:
1: Minimum Thickness of 0.5m
2: CPS Cut-Off of 300 counts per second
3: Maximum Internal Dilution of 2.0m
Natural gamma radiation in the drill core that is reported in this news release was measured in counts per second (cps) using a handheld Radiation Solutions RS-125 scintillometer. The Company considers greater than 300 cps on the handheld spectrometer as anomalous, >10,000 cps as high grade and greater than 65,535 cps as off-scale. The reader is cautioned that scintillometer readings are not directly or uniformly related to uranium grades of the rock sample measured and should be used only as a preliminary indication of the presence of radioactive materials. Samples from the drill core are split in half on site and are standardized at 0.5m lengths. One half of the split sample will be submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) in Saskatoon, SK. for lithogeochemical analysis using their “Uranium Package”.
All depth measurements reported are down-hole and true thickness are yet to be determined.
About Patterson Lake North:
The Company’s 4,078-hectare 100% owned Patterson Lake North property (PLN) is located just within the south-western edge of the Athabasca Basin in proximity to Fission Uranium’s Triple R and NexGen Energy’s Arrow high-grade world class uranium deposits which is poised to become the next major area of development for new uranium operations in northern Saskatchewan. PLN is accessed by Provincial Highway 955, which transects the property, and the new JR Zone uranium discovery is located 23km northwest of Fission Uranium’s Triple R deposit.
Qualified Person:
The technical information in this news release has been prepare in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and approved on behalf of the company by Raymond Ashley, P.Geo., President & COO of F3 Uranium Corp, a Qualified Person. Mr. Ashley has verified the data disclosed.
About F3 Uranium Corp.:
F3 Uranium is a uranium exploration company advancing its newly discovered high-grade JR Zone and exploring for additional mineralized zones on its 100%-owned Patterson Lake North (PLN) Project in the southwest Athabasca Basin. PLN is accessed by Provincial Highway 955, which transects the property, and the new JR Zone discovery is located ~25km northwest of Fission Uranium’s Triple R and NexGen Energy’s Arrow high-grade uranium deposits. This area is poised to become the next major area of development for new uranium operations in northern Saskatchewan. The PLN project is comprised of the PLN, Minto and Broach properties. The Broach property incorporates the former PW property which was obtained from CanAlaska as a result of a property swap.
Forward Looking Statements
This news release contains certain forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, including statements regarding the suitability of the Properties for mining exploration, future payments, issuance of shares and work commitment funds, entry into of a definitive option agreement respecting the Properties, are “forward-looking statements.” These forward-looking statements reflect the expectations or beliefs of management of the Company based on information currently available to it. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, which may cause actual outcomes to differ materially from those discussed in the forward-looking statements. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
The TSX Venture Exchange and the Canadian Securities Exchange have not reviewed, approved or disapproved the contents of this press release, and do not accept responsibility for the adequacy or accuracy of this release.
F3 Uranium Corp.
750-1620 Dickson Avenue
Kelowna, BC V1Y9Y2
Contact Information
Investor Relations
Telephone: 778 484 8030
Email: ir@f3uranium.com
ON BEHALF OF THE BOARD
“Dev Randhawa”
Dev Randhawa, CEO
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/222573
Vancouver, British Columbia–(Newsfile Corp. – September 6, 2024) – Riverside Resources Inc. (TSXV: RRI) (OTCQB: RVSDF) (FSE: 5YY) (“Riverside” or the “Company”), is pleased to announce that on September 4, 2024, it entered into a Letter of Intent with Questcorp Mining Inc. (CSE: QQQ) (“Questcorp”), whereby the Company will grant an option (the “Transaction”) to Questcorp for the acquisition of a one-hundred percent (100%) interest in the La Union project (the “Project”) located in Sonora, Mexico. Riverside will receive $100,000 and 19.9% in the ownership of Questcorp upon Questcorp investing $5,500,000 into the Project over a period of 4 years from the date of completing the Definitive Agreement.
Union is a large, carbonate-hosted gold district with high grade gold-zinc and a former mining operation of the Penoles Mining Company of Mexico. The Project has drive up access, private ranch surface ownership, and geologic features similar to the major carbonate replacement deposits located in Arizona and further east in Mexico. Union has past drilling and mining at multiple production centers which have been consolidated over the past 5 years by Riverside. Riverside now controls over 22 sq km with favorable limestone host rocks, large alteration footprint and many small mine workings which provide more than 8 drill ready target areas with the central former Union Mine and the Famosa Mine as two key immediate target areas.
“We are excited to partner this top-quality Project, consolidated and worked up by Riverside. To now work with Questcorp to go forward with the exploration program and continued development is an excellent collaboration and fits both companies’ business models.” said John Mark Staude, President and CEO of Riverside. “Riverside has extensive operational capacity in Mexico and can rapidly move ahead with Questcorp to unlock the value of La Union Project. Riverside being a significant shareholder of Questcorp with an initial 9.9% on signing the Definitive Agreement aligns our interests to see success for Union and the companies.”
Transaction Details:
In accordance with the terms of the Transaction, Questcorp can acquire a one-hundred percent (100%) interest in the Project in consideration for completion of a series of cash payments totaling $100,000, the issuance of 19.9% of the outstanding common shares of the Questcorp, and the incurrence of no less than $5,500,000 of exploration expenditures on the Project by Questcorp, as follows:
| Deadline | Cash Payment | Share Issuance | Exploration Expenditures |
| Entering into Letter of Intent | (Paid) $12,500 | Nil | N/A |
| Closing of the Transaction (Signing of the Definitive Agreement and conditions) | $12,500 | *9.9% | N/A |
| First Anniversary of Closing | Nil | *14.9% | $1,000,000 |
| Second Anniversary of Closing | $25,000 | *19.9% | $1,250,000 |
| Third Anniversary of Closing | $25,000 | *19.9% | $1,500,000 |
| Fourth Anniversary of Closing | $25,000 | *19.9% | $1,750,000 |
| Total | $100,000 | *19.9% | $5,500,000 |
*Expressed as a cumulative total percentage of the undiluted issued and outstanding common shares of the Company
as of the applicable payment date, and assuming Riverside has not previously disposed of any common shares
**All dollar amounts in this news release are in Canadian dollars
Riverside will remain the program operator for the Project during the term of the option using its local team based in Hermosillo, Sonora and with support from the Vancouver, Canada exploration office. Following exercise of the option, Riverside will retain a two-and-one-half percent (2.5%) net smelter returns royalty on commercial production from the Project.
Exploration work by Riverside over the past 12 months has improved the geologic and structural contextual understanding of the past mines and overall potential areas of mineralization including possibilities for a deeper Laramide age porphyry Cu-Au target as found to the north at Ajo and eastward along the abundant Cu porphyry belt of Sonora- Arizona. Surface sampling recently completed by Riverside has continued to find gold and the tailings from the past mine operators, located in a number of locations on the property, have shown extensive gold zones in oxide ores.
Completion of the Transaction remains subject to a number of conditions, including the finalization of definitive documentation, completion of the Concurrent Financing by Questcorp for gross proceeds of no less than $1,500,000, receipt of any required regulatory, shareholder and third-party consents, approval of the Canadian Securities Exchange, and the satisfaction of other customary closing conditions. Riverside has been paid the initial $12,500 and will be paid the second $12,500 upon signing the Definitive Agreement.
Readers are cautioned that the Letter of Intent does not bind Questcorp to complete the Transaction. Should the Definitive Agreement not be done then the Letter of Intent will automatically terminate after forty-five days. The Transaction cannot close until the required approvals are obtained and the foregoing conditions satisfied. There can be no assurance that the Transaction will be completed as proposed or at all.
Qualified Person:
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 geologic information provided within 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 $5 million in cash, no debt and less than 75 million 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/222177
By: Tekoa Da Silva
9/4/2024
Over the years as an advisor and investor, I’ve spoken to hundreds of mainly natural resource investors. A topic I’ve always found difficult to explain, which is vitally important to understanding a stock, is the different between ‘share price’ and ‘market capitalization’ (also known as ‘market cap’).
In this article we’ll discuss why these two items are important and different from each other, and explore how knowing the difference will allow one to determine the true ‘price paid’ for a stock (or business). Knowing the true price of a business will provide one with a competitive edge, which is particularly important when investing in natural resource shares.
Countless times we’ve been part of investment discussions, where the question of buying a stock comes up. Invariably, the question “How much did you pay?” is asked. Ten out of ten investors will tell you, “I paid $100 per share for Apple (or Barrick Gold)”.
If we then ask, “How much did you pay for the business”? Ninety-nine out of one hundred investors will repeat themselves, and say, “I paid $100 per share.” The odd man out, or the 100th investor would instead say, “I paid $100 per share, at a market capitalization of $100 billion”. In other words, this rare fellow understands that while he paid $100 per share, he actually paid $100 billion, notionally, for the business itself.
How does this compute?
The share price represents the price of a single fractional share of a business. If we wanted to purchase the entire business, we would need to purchase every share issued by the company. If the company has issued 100 million shares (referred to as ‘shares outstanding’) – we would need to purchase all 100 million, in order to purchase the business in its entirety.
How do we calculate how much money is needed to purchase an entire business?
This is where market capitalization comes into play. Market cap is simply the total number of shares issued, multiplied by the share price.
To use our earlier example – if we bought Apple stock at $100 per share, and if (hypothetically speaking) there were 100 million shares outstanding – that would imply a market cap of $10 billion. Therefore, $10 billion would be needed to ‘notionally’ purchase the entire company.
In reality, there are other moving parts involved in purchasing an entire company, but this is a simplified explanation of ‘market cap’.
The best place to find the outstanding share count of a company is the most recent quarterly or annual report. This report can usually be found on the investor relations page of the company’s website, or through the stock exchange or regulatory filing website for the country in question.
When investing in natural resource shares, one must pay extra close attention to market capitalization and outstanding share count. The reason is that outstanding share count can change rapidly over time, and in most cases the number only grows in size.
In the natural resource and mining sector, there are four asset categories: 1. Major producers, 2. Junior producers, 3. Development stage companies, and 4. Exploration stage companies.
Most companies in the bottom three asset categories are ‘negative cash flowing.’ Meaning, they lose money from year to year just staying in business. “How can a company remain in business if it loses money?” you might ask.
Well, the approach taken for most natural resource companies is to issue more stock (shares) and sell it to investors privately in the form of a private placement, or ‘equity offering’.
(Side note: Some investors jokingly refer to profligate junior resource issuers who ‘over-issue’ shares, as “Mining the Stock Market” as opposed to mining anything from the ground.)
When the process of share issuance continues over time, it causes outstanding share count to grow, and when multiplied by the market price – causes market cap to continually grow. Therefore, while the share price of a company may remain the same or decline over time, the expansion or contraction of outstanding share count may cause the market cap (or ‘price paid for the business’) to increase or decrease.
Given that most companies in the bottom three asset classes of the natural resource space are negative cash-flowing, investors need to anticipate share count expansion over time.
The brutal fact, is that each additional share issued by the company represents a ‘slice of the pie’ taken from your plate, as the investor. Your interest in the company is diluted, unless you continue to purchase additional shares, as they are issued.
Why would a company issue more shares – isn’t that a form of theft, and are they cheating me out of my investment?
In defense of management teams, there are many ways in which a share issuance may be helpful to investors (the term we might use is ‘accretive’). For example, let’s say a management team wishes to purchase a strip of property adjacent to their own company’s operating gold mine.
If they issue shares and exchange them for the strip of property, the transaction may be deemed beneficial to shareholders, despite the share dilution. Whether or not the transaction is beneficial would be a separate set of calculations – namely, deciding what the shares exchanged are ‘worth’, and what the strip of property is worth – and whether there is a reasonable rate of return, on the ‘notional’ value spent on the property.
A company may also issue additional shares, with the intended use of funds going toward purchasing complimentary assets which may reduce the cost of operations. As an example – purchasing a fleet of vehicles or other machinery, versus leasing the same. Whether or not the transaction is beneficial would be determined by the details – comparing the value of the shares issued, versus the cost savings gained.
Quite often in the natural resource space, and nearly always by the exploration stage companies – share issuances generate funds to pay employee salaries and ‘keep the lights on’ (also known as general & administrative expense). Many exploration companies survive by continuous financings, year after year, without assurance of continued survival – throughout which, share count continually grows.
A common term for describing the rate of annual consumption of funds of negative cash flowing resource companies, is called ‘Burn Rate’. As an example, a company may have a $2 million cash balance on hand, with an expected expense or Burn Rate of $2 million per annum. Therefore, we know the company will run out of money within 12 months or less, and will need to conduct a financing.
The odds of an exploration company exploring a project on their own, funded solely by their shareholders, and discovering a Tier 1 (highly profitable) deposit, is akin to the odds of winning the lottery. When such a remote set of survival odds are combined with a negative cash flowing business model, it becomes clear, that ‘sole-funded’ exploration companies are among the riskiest market sectors on the planet.
Let’s take a look at a hypothetical example of market cap expansion, via share count:
Beaverbrook Gold Exploration Company (a fictitious company) – has an outstanding share count of 100,000,000 as of its most recent annual report. The market price is $.10 per share. If we multiply this share price against the outstanding share count, we arrive at a market cap (or price to buy the business as a whole), of $10,000,000.00.
The company has $2 million cash on hand, which they estimate will cover exploration expenditures and general & administrative expense for 1 year – a $2 million per annum Burn Rate, in other words.
With that knowledge, we know the company will need to raise additional funds within 12 months or less, and if they expect another year of $2 million in expenditures – then we know it will likely be a $2 million financing (assuming they wish to ask the market for that amount).
A common financing practice to attract investors is to offer shares at a discount to the market price. If our hypothetical company offers a $2mm share issuance, let’s assume they offer the shares at a price of $.08 per share – a 20% discount to market. This would imply issuance of an additional 25,000,000 shares, bringing the total share count up to 125,000,000 – diluting existing shareholders’ interests by 20%.
In response to seeing the offering, some shareholders decide to sell their shares, and the market price drops to $.08, matching the recent offering price. However, since the share count grew – the market cap, using the new share price of $.08 – comes out to $10,000,000 – matching precisely the prior market cap, when there were fewer shares outstanding priced at $.10.
In this circumstance the share price dropped by 20%, but the ‘price of the business’ – market cap in other words, stayed the same. This is an incredibly important dynamic to keep track of when investing in the junior resource space, or any negative cash flowing sectors for that matter. The negative cash flows, year after year, accumulate in the form of ballooning share structures (rising share counts), diluting one’s interest in the underlying company fairly quickly.
The process resembles a musical accordion, expanding to enormous proportions as the music is played:
For many ‘sole-funded’ exploration companies, the speed of annual share issuance is so rapid, that within just a few years – say 3-5 – hundreds of millions of additional shares are issued. The speed and size of share issuance may cause the ‘accordion’ share structure to bloat beyond recognition.
After blowing out the share structure, many companies carry out share consolidations (also known as ‘rollbacks’ or ‘reverse share splits’). A share consolidation might entail 10, 20, 50, or even 100 shares, being condensed and replaced by as few as 1 single post-consolidation share.
Other instances may see shareholders completely wiped out through bankruptcy or other reorganization, with subsequent launching of a new separate company under a different name (in order to shed stigma associated with the prior corporate failure).
There are however a few segments of the junior resource space which generate mildly lower speeds of share dilution. Conservatively run ‘Prospect Generator’ and ‘Optionality Deposit’ companies may meet this criterion. We will discuss ‘Prospect Generator’ model companies at a later date.
Optionality companies typically possess one or more large resource deposits that exhibit ‘leverage’ to a higher commodity price. In simple terms, this means a deposit that is not economic to extract at today’s commodity pricing, but could potentially become economic should the price of a commodity such as gold, silver or copper, double or triple in price – with assumed production costs remaining the same.
The hoped-for strategic intent (from an investor’s viewpoint) of optionality strategy company management teams, is to spend as little money as possible on development, and general & administrative expense, while preserving the deposit’s good & marketable condition. Preserving capital helps preserve the share structure of the company – ie. decelerating share expansion as much as possible.
There are a few optionality companies that engage in exploratory drilling to increase the resource base of an existing deposit, advance feasibility study work, and/or acquire additional optionality deposits over time. ‘Active’ optionality deposit companies of this type will consequently produce share expansion at a faster speed.
Let’s take a look at a few examples of optionality companies, and inspect share price, share count, and market cap over time, of each.
Please note however – this exercise is meant to observe changes over time related to share price, share count, and market cap only. The examples used here do not represent an endorsement of quality or investment ‘attraction’.
For a snapshot of corporate development changes over time, and changes to what a business is ‘worth’ from an intrinsic standpoint – that would be a separate exercise outside the scope of this article.
The following statistical displays are one of many information gathering processes. Inspection of corporate developments over time would require review of the balance sheet, asset and resource base of the company, and income (or loss) statement.
The first company we’ll look at is Chesapeake Gold. As illustrated by the red line below – the share price declined from CAD $4.60 to approximately CAD $1.82 over the last 20 year period, from January 2004 to September 2024. This is over a 50% decline:
As illustrated by the blue line above, the outstanding share count increased from about 17 million to over 67 million during the same 20 year period; nearly a 4x increase.
This resulted in a market cap (price of the business) increase, as illustrated by the green line, which over the same 20 year period grew from about CAD $81 million to over CAD $122 million – an increase of over 50%.
In this example, over the 20 year period, shareholders experienced a 50%+ share price decline, while the price of the business itself rose by over 50% – due to expansion of share count, and consequently, market cap.
The second company we’ll look at is Seabridge Gold. As illustrated by the red line below – the share price increased from CAD $4.75 to approximately CAD $23.71 over the last 20 year period, from January 2004 to September 2024. This is roughly a 5x move higher:
As illustrated by the blue line above, the outstanding share count increased from about 26 million to over 87 million during the same 20 year period; over a 3x increase.
This resulted in a market cap (price of the business) increase, as illustrated by the green line, which over the same 20 year period grew from about CAD $124 million to a recent high over CAD $2.08 billion – an increase of over 16x.
In this example, over the 20 year period, shareholders experienced nearly a 400% gain on their shares, while the price of the business itself rose by over 16x – due to expansion of share count, and consequently, market cap.
The last company we’ll look at is Northern Dynasty. As illustrated by the red line below – the share price decreased from USD $6.15 to approximately USD $0.35 over the last 20 year period, from January 2004 to September 2024. This is nearly a 95% decline:
As illustrated by the blue line above, the outstanding share count increased from about 23 million to over 537 million during the same 20 year period; over a 23x increase.
This resulted in a market cap (price of the business) increase, as illustrated by the green line, which over the same 20 year period grew from about USD $143 million to over USD $186 million – an increase of over 30%.
In this example, over the 20 year period, shareholders experienced nearly a 95% share price decline, while the price of the business itself rose by over 30% – due to expansion of share count, and consequently, market cap.
To further dampen this picture – a common assumption made by nonprofessional investors when looking at a 20-year price chart of Northern Dynasty – is that the USD $18.00 per share price peak generated in 2011, as a matter of course, should be recovered during the next precious metal equity ‘bull market’. From the current USD $.35 share price this would imply a 50x move higher.
When looking at the price of the business – the 2011 market cap peaked around USD $1.7 billion. The current market cap is roughly USD $186 million. Recovering the prior market cap high from here, would imply a 9x move higher – not a 50x move. A 9x move higher in the share price and market cap from here (assuming no further expansion of share count), would imply a share price of USD $3.15 – a far cry, from the majestic heights of USD $18.00 per share, exhibited at the 2011 peak.
The reason the market cap revisitation multiple is lower than some expect, is explained by the blue line in the Northern Dynasty chart above – outstanding share count ballooned by over 23x, during the 20 year period.
A counterargument for a higher Northern Dynasty (or any other company) market cap might rest in the real fact that ‘2011’ US dollars are not the same as ‘2024’ US dollars. The US dollar has weakened to the extent that in January 2011 only 1,360 US dollars were required to purchase an ounce of gold, whereas in September 2024 it takes 2,513 US dollars to purchase an ounce of gold – nearly a 50% loss of purchasing power, during the period.
If we measure Northern Dynasty’s January 2011 market cap peak in gold terms – it would indicate an approximate 1,266,705 gold ounce market cap. If Northern Dynasty today revisited that same market cap peak, in gold ounce terms – at USD $2513 per oz. gold, it would imply a USD market cap of $3.183 billion. A market cap increase to that size would imply about a 17x move higher, from here.
There is speculative prospect of further USD devaluation, which offers the potential of driving market caps higher for all ‘hard asset’ businesses. It is up to individual investors and speculators, to decide if they wish to factor currency devaluation into their approach.
The difference between ‘share price’ and ‘market capitalization’ is stark. Without knowing the quantity and difference between the two, an investor will not know how much he or she is paying for a business.
Many investors discuss share price, but not many engage market cap discussions. Market cap is determined by outstanding share count, which like a musical accordion, can expand and contract greatly over time.
To increase survival odds, investors and speculators should consider visiting with company financial statements over time. The statements will indicate whether share count has been expanding or contracting. It is an especially important metric to follow in the junior natural resource space.
This tool (market cap monitoring) will contribute to your competitive edge. And most investors are unaware of it.
To reach or follow the author, Tekoa Da Silva, visit:
X/Twitter: https://x.com/TekoaDasilva
Edmonton, Alberta–(Newsfile Corp. – September 3, 2024) – Grizzly Discoveries Inc. (TSXV: GZD) (FSE: G6H) (OTCQB: GZDIF) (“Grizzly” or the “Company”) Is pleased to announce the appointment of Mr. Phil B. Acton of Hayward, CA as an Advisor to the Board of Directors.
Mr. Acton is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants and the Utah Association of Certified Public Accountants and has extensive business experience in various industries. This includes ownership of multiple businesses, providing tax, audit and other attestation services, portfolio and cash management for a Private Trust, and co-managing 20-80 trucks transporting uranium ore in Utah. Since 2000, Mr. Acton has been a shareholder and General Manager of East Bay Motorsports, Inc. in Hayward, California, guiding significant growth of the business through acquisitions and marketing and increasing sales from US$8.0 million to over US$26 million.
Brian Testo, President and CEO of Grizzly Discoveries, stated, “We continue to strengthen our Advisory Board with motivated and qualified individuals with diverse skillsets. We are thrilled to welcome Mr. Acton to the Grizzly team as his business acumen and strategic insight will be instrumental as we position ourselves for the inevitable improvement in market conditions for the junior mineral exploration industry in Canada.”
In conjunction with his appointment, the Board has authorized the grant of 1,000,000 stock options of Grizzly with an exercise price of $0.05 per option to Mr. Acton, expiring on September 3, 2029 or earlier in accordance with the Company’s stock option plan. The grant of options is subject to acceptance by the TSX Venture Exchange.
ABOUT GRIZZLY DISCOVERIES INC.
Grizzly is a diversified Canadian mineral exploration company with its primary listing on the TSX Venture Exchange focused on developing its approximately 72,700 ha (approximately 180,000 acres) of precious and base metals properties in southeastern British Columbia. Grizzly is run by a highly experienced junior resource sector management team, who have a track record of advancing exploration projects from early exploration stage through to feasibility stage.
On behalf of the Board,
GRIZZLY DISCOVERIES INC.
Brian Testo, CEO, President
For further information, please visit our website at www.grizzlydiscoveries.com or contact:
Nancy Massicotte
Corporate Development
Tel: 604-507-3377
Email: nancy@grizzlydiscoveries.com
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.
Caution concerning forward-looking information
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Grizzly in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Grizzly’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.
Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available under the Company’s SEDAR+ profile at www.sedarplus.ca. Grizzly disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/221903
Hits 0.71m of Off-Scale (>65,535cps) within 12.0m of Mineralization at JR
Kelowna, British Columbia–(Newsfile Corp. – August 13, 2024) – F3 Uranium Corp (TSXV: FUU) (OTCQB: FUUFF) (“F3” or “the Company“) is pleased to announce recent JR Zone high grade infill summer drilling highlighted by PLN24-161, which intersected mineralization over 12.0m, including 2.0m of high grade (>10,000cps) also hosting 0.71m of composite off-scale mineralization (>65,535 cps). Drill hole PLN24-163 at JR intersected 0.90m of composite high grade mineralization (>10,000 cps) within 20.5m of mineralization (>300cps). JR Zone infill holes targeted areas of low drill hole density within the high-grade core of the zone. These holes help to improve and define the continuity of grade within the JR Zone.
F3 engaged Computational Geosciences to provide new geologically constrained inversions of ground loop time domain electromagnetic (GTEM) and direct current (DC) resistivity data already collected on the ground. These parametric models of electric conductivity (see Figure 1) defined a clear extension of the B1 trend which was tested and validated with drillhole PLN24-168, a 700m step-out along strike from PLN24-126, which was the most southeasterly hole along the B1 shear zone previously and 1,300m from its northwest end. Drill hole PLN24-168 intersected a 14.2m strongly prospective and wide clay altered graphitic shear zone approximately 110m below the Athabasca Unconformity in the down-dip direction (see Photo 1). Additionally, the inversion indicated the B1 conductor trend to continue to the southeast an additional 700m to the edge of the survey block resulting in an approximate 80% increase in the total implied strike length of the B1 shear zone to 2.7km.
Sam Hartmann, Vice President Exploration, commented:
“PLN24-168 was collared on line 4245S, approximately 1.2 km along strike from the Harrison Fault and PLN24-152 area, opening up an additional 700m of prospective strike from previous drilling. This wildcat hole was collared conservatively, testing the newly defined conductive feature well below the Athabasca Unconformity; an altered and strongly graphitic shear representing the continuation of B1 was intersected as predicted from the conductivity model; it also exhibited elevated radioactivity averaging 200 cps peaking up to 240cps; although that doesn’t quite meet our reporting threshold of 300 cps, it adds to the prospectivity and follow-up holes are now being planned for that area. Geochemistry results from this ongoing drill program are being integrated into our models and drill plans as they arrive which is assisting us with targeting with greater confidence.”
Figure 1
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8110/219744_d09f67fd247b8b6d_002full.jpg
Summer 2024 JR Zone Handheld Spectrometer Highlights:
PLN24-161 (line 035S):
- 12.0m interval with mineralization from 205.0m to 217.0m, including
- 0.71m composite off-scale radioactivity (> 65,535 cps) between 208.2m and 209.25m
PLN24-163 (line 095S):
- 20.5m interval of mineralization between 197.0m to 217.5m, including
0.90m composite high-grade mineralization (> 10,000 cps) between 205.25 m and 206.5m
Summer 2024 Exploration Handheld Spectrometer Highlights:
PLN24-167 (line 3450S): B1 Exploration
- 0.5m mineralized interval from 453.5m to 454.0m
Photo 1: PLN24-168 – 700m Step-Out Along Strike at B1
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8110/219744_d09f67fd247b8b6d_003full.jpg
Table 1. Drill Hole Summary and Handheld Spectrometer Results
| Collar Information | * Hand-held Spectrometer Results On Mineralized Drillcore (>300 cps / >0.5m minimum) | Athabasca Unconformity Depth (m) | Total Drillhole Depth (m) | |||||||||
| Hole ID | Section Line | Easting | Northing | Elevation | Az | Dip | From (m) | To (m) | Interval (m) | Max CPS | ||
| PLN24-161 | 035S | 587791.0 | 6410763.9 | 546.4 | -80.3 | 57.0 | 205.00 | 205.50 | 0.50 | 460 | 179.8 | 269 |
| 205.50 | 206.00 | 0.50 | <300 | |||||||||
| 206.00 | 206.50 | 0.50 | 450 | |||||||||
| 206.50 | 207.00 | 0.50 | 1500 | |||||||||
| 207.00 | 207.50 | 0.50 | 3800 | |||||||||
| 207.50 | 208.00 | 0.50 | 50600 | |||||||||
| 208.00 | 208.20 | 0.20 | 44000 | |||||||||
| 208.20 | 208.50 | 0.30 | >65535 | |||||||||
| 208.50 | 208.66 | 0.16 | >65535 | |||||||||
| 208.66 | 208.80 | 0.14 | 62700 | |||||||||
| 208.80 | 208.90 | 0.10 | >65535 | |||||||||
| 208.90 | 209.00 | 0.10 | 56700 | |||||||||
| 209.00 | 209.10 | 0.10 | 53700 | |||||||||
| 209.10 | 209.25 | 0.15 | >65535 | |||||||||
| 209.25 | 209.50 | 0.25 | 52200 | |||||||||
| 209.50 | 210.00 | 0.50 | 8800 | |||||||||
| 210.00 | 210.50 | 0.50 | 3900 | |||||||||
| 210.50 | 211.00 | 0.50 | 1800 | |||||||||
| 211.00 | 211.50 | 0.50 | 910 | |||||||||
| 211.50 | 212.00 | 0.50 | 1800 | |||||||||
| 212.00 | 212.50 | 0.50 | 6500 | |||||||||
| 212.50 | 213.00 | 0.50 | 4200 | |||||||||
| 213.00 | 213.50 | 0.50 | 980 | |||||||||
| 213.50 | 214.00 | 0.50 | 960 | |||||||||
| 214.00 | 214.50 | 0.50 | 9100 | |||||||||
| 214.50 | 215.00 | 0.50 | 4600 | |||||||||
| 215.00 | 215.50 | 0.50 | 4300 | |||||||||
| 215.50 | 216.00 | 0.50 | 15900 | |||||||||
| 216.00 | 216.50 | 0.50 | 1200 | |||||||||
| 216.50 | 217.00 | 0.50 | 950 | |||||||||
| PLN24-162 | 2850S | 589301.3 | 6408383.6 | 538.0 | -67.9 | 54.5 | 426.50 | 427.00 | 0.50 | 340 | 184.0 | 521 |
| PLN24-163 | 095S | 587813.1 | 6410709.8 | 546.9 | -78.5 | 52.4 | 194.00 | 194.50 | 0.50 | 310 | 181.33 | 305 |
| 197.00 | 197.50 | 0.50 | 760 | |||||||||
| 197.50 | 198.00 | 0.50 | <300 | |||||||||
| 198.00 | 198.50 | 0.50 | 400 | |||||||||
| 198.50 | 199.00 | 0.50 | 640 | |||||||||
| 199.00 | 199.50 | 0.50 | 580 | |||||||||
| 199.50 | 200.00 | 0.50 | 3700 | |||||||||
| 200.00 | 200.50 | 0.50 | 1200 | |||||||||
| 200.50 | 201.00 | 0.50 | 540 | |||||||||
| 201.00 | 201.50 | 0.50 | 580 | |||||||||
| 201.50 | 202.00 | 0.50 | 300 | |||||||||
| 202.00 | 202.50 | 0.50 | 410 | |||||||||
| 202.50 | 203.00 | 0.50 | 690 | |||||||||
| 203.00 | 203.50 | 0.50 | 710 | |||||||||
| 203.50 | 204.00 | 0.50 | 1100 | |||||||||
| 204.00 | 204.50 | 0.50 | 4800 | |||||||||
| 204.50 | 205.00 | 0.50 | 3200 | |||||||||
| 205.00 | 205.25 | 0.25 | 5700 | |||||||||
| 205.25 | 205.50 | 0.25 | 21100 | |||||||||
| 205.50 | 206.00 | 0.50 | 19000 | |||||||||
| 206.00 | 206.35 | 0.35 | 5400 | |||||||||
| 206.35 | 206.50 | 0.15 | 11500 | |||||||||
| 206.50 | 207.00 | 0.50 | 4700 | |||||||||
| 207.00 | 207.50 | 0.50 | 400 | |||||||||
| 207.50 | 208.00 | 0.50 | 2800 | |||||||||
| 208.00 | 208.50 | 0.50 | 2600 | |||||||||
| 208.50 | 209.00 | 0.50 | 1200 | |||||||||
| 209.00 | 209.50 | 0.50 | 970 | |||||||||
| 209.50 | 210.00 | 0.50 | 950 | |||||||||
| 210.00 | 212.00 | 2.00 | <300 | |||||||||
| 212.00 | 212.50 | 0.50 | 580 | |||||||||
| 212.50 | 214.00 | 1.50 | <300 | |||||||||
| 214.00 | 214.50 | 0.50 | 810 | |||||||||
| 214.50 | 215.50 | 1.00 | <300 | |||||||||
| 215.50 | 216.00 | 0.50 | 590 | |||||||||
| 216.00 | 216.50 | 0.50 | 500 | |||||||||
| 216.50 | 217.00 | 0.50 | 640 | |||||||||
| 217.00 | 217.50 | 0.50 | 420 | |||||||||
| PLN24-164 | 2880S | 589259.5 | 6408356.8 | 538.2 | -65.3 | 68.9 | A1 MSZ Exploration; no radioactivity >300 cps | 187.52 | 551 | |||
| PLN24-165 | 3195S | 589613.8 | 6408183.7 | 535.0 | -72.4 | 55.0 | B1 MSZ Exploration; no radioactivity >300 cps | 347.18 | 526 | |||
| PLN24-166 | 735S | 587974.1 | 6410035.3 | 555.2 | -60.4 | 54.9 | A1 MSZ Exploration; no radioactivity >300 cps | 182.33 | 512 | |||
| PLN24-167 | 3450S | 589969.9 | 6408137.0 | 534.4 | -74.2 | 51.5 | 453.50 | 454.00 | 0.50 | 310 | 336.7 | 512 |
| PLN24-168 | 4245S | 590177.6 | 6407291.5 | 542.3 | -70.3 | 55.3 | B1 MSZ Exploration; no radioactivity >300 cps | 365.08 | 557 | |||
Handheld spectrometer composite parameters:
1: Minimum Thickness of 0.5m
2: CPS Cut-Off of 300 counts per second
3: Maximum Internal Dilution of 2.0m
Natural gamma radiation in the drill core that is reported in this news release was measured in counts per second (cps) using a handheld Radiation Solutions RS-125 scintillometer. The Company considers greater than 300 cps on the handheld spectrometer as anomalous, >10,000 cps as high grade and greater than 65,535 cps as off-scale. The reader is cautioned that scintillometer readings are not directly or uniformly related to uranium grades of the rock sample measured and should be used only as a preliminary indication of the presence of radioactive materials.
All depth measurements reported are down-hole and true thickness are yet to be determined.
About Patterson Lake North:
The Company’s 4,078-hectare 100% owned Patterson Lake North property (PLN) is located just within the south-western edge of the Athabasca Basin in proximity to Fission Uranium’s Triple R and NexGen Energy’s Arrow high-grade world class uranium deposits which is poised to become the next major area of development for new uranium operations in northern Saskatchewan. PLN is accessed by Provincial Highway 955, which transects the property, and the new JR Zone uranium discovery is located 23km northwest of Fission Uranium’s Triple R deposit.
Qualified Person:
The technical information in this news release has been prepare in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and approved on behalf of the company by Raymond Ashley, P.Geo., President & COO of F3 Uranium Corp, a Qualified Person. Mr. Ashley has verified the data disclosed.
About F3 Uranium Corp.:
F3 Uranium is a uranium project generator and exploration company, focusing on projects in the Athabasca Basin, home to some of the world’s largest high grade uranium discovery. F3 Uranium currently has 20 projects in the Athabasca Basin. Several of F3’s projects are near large uranium discoveries including Triple R, Arrow and Hurricane. F3 has announced a transaction pursuant to which it will transfer 17 of its prospective uranium exploration properties to F4 in exchange for common shares of F4 which will be distributed to F3 shareholders on the basis of one F4 Share for every common share of F3 held; the F4 shares will then be rolled back at a rate of 10 to 1. F3 will retain the PLN Project consisting of the PLN, Misto and Broach properties. The Broach property incorporates the PW property which it obtained from CanAlaska as the result of a property swap.
Forward-Looking Statements
This news release contains certain forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, including statements regarding the suitability of the Properties for mining exploration, future payments, issuance of shares and work commitment funds, entry into of a definitive option agreement respecting the Properties, are “forward-looking statements.” These forward-looking statements reflect the expectations or beliefs of management of the Company based on information currently available to it. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, which may cause actual outcomes to differ materially from those discussed in the forward-looking statements. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
The TSX Venture Exchange and the Canadian Securities Exchange have not reviewed, approved or disapproved the contents of this press release, and do not accept responsibility for the adequacy or accuracy of this release.
F3 Uranium Corp.
750-1620 Dickson Avenue
Kelowna, BC V1Y9Y2
Contact Information
Investor Relations
Telephone: 778 484 8030
Email: ir@f3uranium.com
ON BEHALF OF THE BOARD
“Dev Randhawa”
Dev Randhawa, CEO
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219744
Vancouver, British Columbia–(Newsfile Corp. – August 12, 2024) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX”) is pleased to report results for the three and six months ended June 30, 2024 (in U.S. dollars unless otherwise noted).
In Q2 2024, EMX continued on a strong uptrend in revenue due to robust royalty production and strong metal prices. Strong performance during the quarter was marked from Timok, Gediktepe, and Leeville. EMX continued to invest capital generating and acquiring royalties around the world while our partners invested significant capital to expand operations at existing mines, advance towards the development of new mines, and explore for new opportunities.
Summary of Financial Highlights for the Quarter Ended June 30, 2024 and 2023:1
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (In thousands of dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Statement of Loss | ||||||||||||
| Revenue and other income | $ | 6,005 | $ | 3,408 | $ | 12,245 | $ | 6,150 | ||||
| General and administrative costs | (1,694 | ) | (1,576 | ) | (3,842 | ) | (3,298 | ) | ||||
| Royalty generation and project evaluation costs, net | (2,907 | ) | (2,200 | ) | (5,841 | ) | (5,022 | ) | ||||
| Net loss | $ | (4,022 | ) | $ | (4,722 | ) | $ | (6,249 | ) | $ | (8,448 | ) |
| Statement of Cash Flows | ||||||||||||
| Cash flows from operating activities | $ | (514 | ) | $ | (1,002 | ) | $ | 513 | $ | (4,335 | ) | |
| Non-IFRS Financial Measures1 | ||||||||||||
| Adjusted revenue and other income | $ | 8,758 | $ | 6,614 | $ | 17,051 | $ | 11,582 | ||||
| Adjusted royalty revenue | $ | 7,836 | $ | 5,265 | $ | 15,493 | $ | 9,208 | ||||
| GEOs sold | 3,352 | 2,662 | 7,047 | 4,750 | ||||||||
| Adjusted cash flows from operating activities | $ | 1,341 | $ | 1,452 | $ | 4,002 | $ | (983 | ) | |||
| Adjusted EBITDA | $ | 4,639 | $ | 2,848 | $ | 7,862 | $ | 3,222 | ||||
| Strong Revenue Growth Adjusted revenue and other income1 increased by 32% compared to Q2 2023•Adjusted royalty revenue1 increased by 49% compared to Q2 2023 | Development of Flagship Assets Significant investment by Zijin Mining Group at Timok through continued development of upper and lower zonesLundin Mining increased its ownership percentage in Caserones to 70% |
| Record Quarterly Revenue from Flagship Asset Timok generated royalty revenue of $1,586,000 in Q2 2024 for a second consecutive quarter of record production from the upper zone | Consistent and Steady Cash Flows Fifth consecutive quarter with positive adjusted cash flows from operating activities1 |
Outlook
The Company is maintaining its 2024 guidance of GEOs sales of 11,000 to 14,000, adjusted royalty revenue of $22,000,000 to $27,500,000 and option and other property income of $2,000,000 to $3,000,000. The Company is currently on pace to achieve the upper end of its annual guidance for GEOs sold and adjusted royalty revenue, while aiming for the lower end of our option and other property income guidance.
The Company is excited about the prospect for continued growth in the portfolio for 2024 and the coming years. The driver for near and long term growth in cash flow will come from the large deposits of Caserones in Chile and Timok in Serbia. At Caserones, Lundin has initiated an exploration program which is intended to expand mineral resources and mineral reserves while at the same time looking to increase throughput at the plant. At Timok, Zijin Mining Group Co. continues to increase its production rates in the upper zone copper-gold deposit while developing the lower zone, which we believe will be one of the more important block cave development projects in the world.
In terms of other production royalty assets, the Company expects Gediktepe, Leeville, and Gold Bar South to mirror what occurred in 2023. In Türkiye, Gediktepe continues to perform well and is ahead of its production forecast for 2024 (as of the end of Q2) and production rates and grades at Balya North ramped up again in Q2. We are also excited about the advancement of Diablillos in Argentina by AbraSilver Resource Corp. where the company continues to expand the mineral resource.
The Company will continue to evaluate and work to acquire mineral rights and royalties in 2024. The Company expects it will invest similar amounts as in 2023 towards the royalty generation business. As in previous years, producing royalties will continue to be supplemented by option, advance royalty, and other pre-production payments from partnered projects across the global asset portfolio. Efforts and programs are underway to optimize and control costs as the Company continues to grow. EMX believes it is well positioned to identify and pursue new royalty and investment opportunities, while further filling a pipeline of royalty generation properties that provide opportunities for additional cash flow, as well as exploration, development, and production success.
As part of the Company’s effort to continue to strengthen its balance sheet, subsequent to the end of the period, the Company has closed the refinancing of its outstanding debt with Sprott Private Resource Lending II of $34,660,000, with a new $35,000,000 credit agreement with Franco-Nevada Corporation (“Franco”), previously announced on June 20, 2024. This refinancing extends the maturity date of the Company’s debt facility from December 31, 2024 to July 1, 2029.
Second Quarter Results for 2024
In Q2 2024, the Company recognized $8,758,000 and $7,836,000 in adjusted revenue and other income1 and adjusted royalty revenue1, respectively, which represented a 32% and 49% increase, respectively, compared to Q2 2023. The significant increase is due to the commencement of royalty payments in Q3 2023 from the Timok royalty property, as well as a 54% increase in royalty revenue from Gediktepe and a 79% increase in royalty revenue from Leeville when compared to Q2 2023.
The following table is a summary of GEOs1 sold and adjusted royalty revenue1 for the three months ended June 30, 2024 and 2023:
| 2024 | 2023 | ||||||||||
| GEOs Sold | Revenue (in thousands) | GEOs Sold | Revenue (in thousands) | ||||||||
| Caserones | 1,178 | $ | 2,753 | 1,621 | $ | 3,206 | |||||
| Timok | 678 | 1,586 | – | – | |||||||
| Gediktepe | 772 | 1,806 | 594 | 1,175 | |||||||
| Leeville | 508 | 1,187 | 336 | 664 | |||||||
| Balya | 133 | 311 | 5 | 9 | |||||||
| Gold Bar South | 71 | 167 | 68 | 134 | |||||||
| Advanced royalty payments | 11 | 26 | 39 | 77 | |||||||
| Adjusted royalty revenue | 3,352 | $ | 7,836 | 2,662 | $ | 5,265 | |||||
Included in the quarterly revenue for Caserones was a true up of $493,000 (Q2 2023 – $1,153,000) due to a higher than expected revenue in the prior quarter. The true up in the current period was mainly driven by higher than anticipated copper and molybdenum sales in Q1 2024.
The following table is a summary of GEOs1 sold and adjusted royalty revenue1 for the six months ended June 30, 2024 and 2023:
| 2024 | 2023 | ||||||||||
| GEOs Sold | Revenue (in thousands) | GEOs Sold | Revenue (in thousands) | ||||||||
| Caserones | 2,168 | $ | 4,806 | 2,800 | $ | 5,432 | |||||
| Timok | 1,290 | 2,853 | – | – | |||||||
| Gediktepe | 2,216 | 4,796 | 1,084 | 2,101 | |||||||
| Leeville | 925 | 2,051 | 618 | 1,198 | |||||||
| Balya | 228 | 508 | 86 | 162 | |||||||
| Gold Bar South | 108 | 242 | 68 | 134 | |||||||
| Advanced royalty payments | 113 | 237 | 94 | 181 | |||||||
| Adjusted royalty revenue | 7,047 | $ | 15,493 | 4,750 | $ | 9,208 | |||||
Net royalty generation and project evaluation costs increased from $2,200,000 in Q2 2023 to $2,907,000 in Q2 2024. Royalty generation costs include exploration related activities, technical services, project marketing, land and legal costs, as well as third party due diligence for acquisitions. The increase in net royalty generation and project evaluation costs was predominately attributable to the timing of the 2024 and 2023 annual share-based compensation grants. The 2024 annual grant occurred in Q2 2024 while the 2023 grant occurred in Q3 2023. This timing difference generated a $472,000 increase in costs when compared to Q2 2023. The remaining increase can be attributed to an increase in property costs in Fennoscandia and South America, a decrease in recoveries in Fennoscandia and an increase in overall costs in Eastern Europe and Morocco.
These cost increases were offset by a $203,000 decrease in net expenditures in the USA. The decrease was primarily related to drilling costs that were incurred in 2023, through a former subsidiary of the Company, Scout Drilling LLC., in exchange for future royalty opportunities.
Not inclusive of the net royalty generation and project evaluation cost, EMX earned $555,000 in royalty generation revenue in Q2 2024 (Q2 2023 – $1,088,000).
Second Quarter Corporate Updates
Appointment of Two New Members to the Board of Directors
In Q2 2024, the Company announced the appointment of Dawson Brisco and Chris Wright to the Board of Directors.
Credit Agreement with Franco-Nevada Corporation
In June 2024, the Company announced that it had entered into a $35,000,000 credit agreement with Franco-Nevada Corporation with a maturity date of July 1, 2029. Once received, the Company will use the proceeds of the loan to repay the outstanding balance of the Sprott Credit Facility and for general working capital purposes. Subsequent to the end of the period, the Company closed its credit agreement with Franco.
Inaugural Sustainability Report
The Company is also pleased to announce the publication of its inaugural Sustainability Report for 2023. This report marks a milestone in the Company’s journey with respect to its sustainable and ethical business practices and sets a foundational baseline for the Company’s Environmental, Social and Governance (ESG) efforts moving forward. The report provides information on the Company’s key ESG initiatives, reviews performance metrics, identifies improvement areas, and sets future targets.
Commencement of Normal Course Issuer Bid
During the three months ended June 30, 2024 (“Q2 2024”) the Company purchased 106,276 common shares at a cost of $206,000 which were returned to treasury pursuant to the Company’s Normal Course Issuer Bid. Subsequent the period end, the Company repurchased 167,199 shares for a total cost of $305,000.
Cyber Event Update
In April 2024, the Company became aware that one of the Company’s subsidiaries in Türkiye was the subject of a cyber event resulting in a potential loss of up to $2,326,000. The Company has launched a full investigation of the event which remains ongoing and is pursuing recovery of its funds through all legally available means as appropriate, in order to mitigate the loss amount to the fullest extent possible. A criminal complaint has been filed with the public prosecutor’s office in Türkiye which is the first step to recovery whether it be through a criminal or civil process, or both. EMX is also working with its attorneys in Mexico and is currently preparing a civil complaint in the jurisdiction in which the funds were received and withdrawn. An extensive investigation by a reputable third party security firm yielded that there was no intrusion into EMX systems nor its network in its findings. EMX continues to vigorously pursue all remedies available to it in pursuit of recovery all or a part of the funds.
Qualified Persons
Michael P. Sheehan, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified, and approved the above technical disclosure on North America and Latin America, except for Caserones. Consulting Chief Mining Engineer Mark S. Ramirez, SME Registered Member #04039495, a Qualified Person as defined by NI 43-101 and consultant to the Company, has reviewed, verified and approved the above technical disclosure with respect to the Caserones Mine. Eric P. Jensen, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified, and approved the above technical disclosure on Europe, Türkiye and Australia.
Shareholder Information – The Company’s filings for the year are available on SEDAR+ at www.sedarplus.ca, on the U.S. Securities and Exchange Commission’s EDGAR website at www.sec.gov, and on EMX’s website at www.EMXroyalty.com. Financial results were prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board.
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:
David M. Cole
President and CEO
Phone: (303) 973-8585
Dave@EMXroyalty.com
Isabel Belger
Investor Relations
Phone: +49 178 4909039
IBelger@EMXroyalty.com
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 information” or “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding the future price of copper, gold and other metals, the estimation of mineral reserves and resources, realization of mineral reserve estimates, the timing and amount of estimated future production, the Company’s growth strategy and expectations regarding the guidance for 2024 and future outlook, including revenue and GEO estimates, refinancing outstanding debt and the timing thereof, the acquisition of additional royalty interests and partnerships, the purchase of securities pursuant to the Company’s NCIB or other statements that are not statements of fact. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as “expects,” “anticipates,” “believes,” “plans,” “projects,” “estimates,” “assumes,” “intends,” “strategy,” “goals,” “objectives,” “potential,” “possible” or variations thereof or stating that certain actions, events, conditions or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements are based on a number of material assumptions, including those listed below, which could prove to be significantly incorrect, including disruption to production at any of the mineral properties in which the Company has a royalty, or other interest; estimated capital costs, operating costs, production and economic returns; estimated metal pricing (including the estimates from the CIBC Global Mining Group’s Consensus Commodity Price Forecasts published on January 2, 2024), metallurgy, mineability, marketability and operating and capital costs, together with other assumptions underlying the Company’s resource and reserve estimates; the expected ability of any of the properties in which the Company holds a royalty, or other interest to develop adequate infrastructure at a reasonable cost; assumptions that all necessary permits and governmental approvals will remain in effect or be obtained as required to operate, develop or explore the various properties in which the Company holds an interest; and the activities on any on the properties in which the Company holds a royalty, or other interest will not be adversely disrupted or impeded by development, operating or regulatory risks or any other government actions.
Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, failure to maintain or receive necessary approvals, changes in business plans and strategies, market conditions, share price, best use of available cash, copper, gold and other commodity price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks relating to the parties which produce the gold or other commodity the Company will purchase, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global economic climate, dilution, share price volatility and competition.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the impact of general business and economic conditions, the absence of control over mining operations from which the Company will receive royalties from, and risks related to those mining operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined, risks in the marketability of minerals, fluctuations in the price of gold and other commodities, fluctuation in foreign exchange rates and interest rates, stock market volatility, as well as those factors discussed in the Company’s MD&A for the quarter ended June 30, 2024, 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. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained or incorporated by reference, except in accordance with applicable securities laws.
Future-Oriented Financial Information
This news release may contain future-oriented financial information (“FOFI”) within the meaning of Canadian securities legislation, about prospective results of operations, financial position, GEOs and anticipated royalty payments based on assumptions about future economic conditions and courses of action, which FOFI is not presented in the format of a historical balance sheet, income statement or cash flow statement. The FOFI has been prepared by management to provide an outlook of the Company’s activities and results and has been prepared based on a number of assumptions including the assumptions discussed under the headings above entitled “2024 Guidance”, “Outlook” and “Forward-Looking Statements” and assumptions with respect to the future metal prices, the estimation of mineral reserves and resources, realization of mineral reserve estimates and the timing and amount of estimated future production. Management does not have, or may not have had at the relevant date, or other financial assumptions which may have been used to prepare the FOFI or assurance that such operating results will be achieved and, accordingly, the complete financial effects are not, or may not have been at the relevant date of the FOFI, objectively determinable.
Importantly, the FOFI contained in this news release are, or may be, based upon certain additional assumptions that management believes to be reasonable based on the information currently available to management, including, but not limited to, assumptions about: (i) the future pricing of metals, (ii) the future market demand and trends within the jurisdictions in which the Company or the mining operators operate, and (iii) the operating cost and effect on the production of the Company’s royalty partners. The FOFI or financial outlook contained in this news release do not purport to present the Company’s financial condition in accordance with IFRS, and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented in any such document, and such variation may be material (including due to the occurrence of unforeseen events occurring subsequent to the preparation of the FOFI). The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments as at the applicable date. However, because this information is highly subjective and subject to numerous risks including the risks discussed under the heading above entitled “Forward-Looking Statements” and under the heading “Risk Factors” in the Company’s public disclosures, FOFI or financial outlook within this news release should not be relied on as necessarily indicative of future results.
Non-IFRS Financial Measures
The Company has included certain non-IFRS financial measures in this press release, as discussed below. EMX believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. These non-IFRS financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These financial measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
Non-IFRS financial measures are defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”) as a financial measure disclosed that (a) depicts the historical or expected future financial performance, financial position or cash flow of an entity, (b) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity, (c) is not disclosed in the financial statements of the entity, and (d) is not a ratio, fraction, percentage or similar representation. A non-IFRS ratio is defined by NI 52-112 as a financial measure disclosed that (a) is in the form of a ratio, fraction, percentage or similar representation, (b) has a non-IFRS financial measure as one or more of its components, and (c) is not disclosed in the financial statements.
The following table outlines the non-IFRS financial measures, their definitions, the most directly comparable IFRS measures and why the Company use these measures.
| Non-IFRS financial measure | Definition | Most directly comparable IFRS measure | Why we use the measure and why it is useful to investors | |||
| Adjusted revenue and other income | Defined as revenue and other income including the Company’s share of royalty revenue related to the Company’s effective royalty on Caserones. | Revenue and other income | The Company believes these measures more accurately depict the Company’s revenue related to operations as the adjustment is to account for revenue from a material asset | |||
| Adjusted royalty revenue | Defined as royalty revenue including the Company’s share of royalty revenue related to the Company’s effective royalty on Caserones. | Royalty revenue | ||||
| Adjusted cash flows from operating activities | Defined as cash flows from operating activities plus the cash distributions related to the Company’s effective royalty on Caserones. | Cash flows from operating activities | The Company believes this measure more accurately depicts the Company’s cash flows from operations as the adjustment is to account for cash flows from a material asset. | |||
| Gold equivalent ounces (GEOs) | GEOs is a non-IFRS measure that is based on royalty interests and calculated on a quarterly basis by dividing adjusted royalty revenue by the average gold price during such quarter. The gold price is determined based on the LBMA PM fix. For periods longer than one quarter, GEOs are summed for each quarter in the period. | Royalty revenue | The Company uses this measure internally to evaluate our underlying operating performance across the royalty portfolio for the reporting periods presented and to assist with the planning and forecasting of future operating results. | |||
| Earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA | EBITDA represents net earnings or loss for the period before income tax expense or recovery, depreciation and amortization, finance costs. Adjusted EBITDA adds all revenue from the Caserones Royalty less any equity income from the equity investment in the Caserones Royalty. Additionally, it removes the effects of items that do not reflect our underlying operating performance and are not necessarily indicative of future operating results. These may include: share based payments expense; unrealized and realized gains and losses on investments; write-downs of assets; impairments or reversals of impairments; foreign exchange gains or losses; and other non-cash or non-recurring expenses or recoveries. | Earnings or loss before income tax | The Company believes EBITDA and adjusted EBITDA are widely used by investors and analysts as useful indicators of our operating performance, our ability to invest in capital expenditures, our ability to incur and service debt and also as a valuation metric. |
Reconciliation of Adjusted Revenue and Other Income and Adjusted Royalty Revenue:
During the three months ended June 30, 2024 and 2023, the Company had the following sources of revenue and other income:
| (In thousands of dollars) | Three months ended June 30, | Six months ended June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Royalty revenue | $ | 5,083 | $ | 2,059 | $ | 10,687 | $ | 3,776 | ||||
| Option and other property income | 492 | 1,011 | 680 | 1,700 | ||||||||
| Interest income | 430 | 338 | 878 | 674 | ||||||||
| Total revenue and other income | $ | 6,005 | $ | 3,408 | $ | 12,245 | $ | 6,150 | ||||
The following is the reconciliation of adjusted revenue and other income and adjusted royalty revenue:
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (In thousands of dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Revenue and other income | $ | 6,005 | $ | 3,408 | $ | 12,245 | $ | 6,150 | ||||
| SLM California royalty revenue | $ | 6,442 | $ | 7,685 | $ | 11,247 | $ | 13,584 | ||||
| The Company’s ownership % | 42.7 | 40.0 | 42.7 | 40.0 | ||||||||
| The Company’s share of royalty revenue | $ | 2,753 | $ | 3,206 | $ | 4,806 | $ | 5,432 | ||||
| Adjusted revenue and other income | $ | 8,758 | $ | 6,614 | $ | 17,051 | $ | 11,582 | ||||
| Royalty Revenue | $ | 5,083 | $ | 2,059 | $ | 10,687 | $ | 3,776 | ||||
| The Company’s share of royalty revenue | 2,753 | 3,206 | 4,806 | 5,432 | ||||||||
| Adjusted royalty revenue | $ | 7,836 | $ | 5,265 | $ | 15,493 | $ | 9,208 | ||||
Reconciliation of GEOs:
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (In thousands of dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Adjusted Royalty Revenue | $ | 7,836 | $ | 5,265 | $ | 15,493 | $ | 9,208 | ||||
| Average gold price per ounce | $ | 2,338 | $ | 1,978 | $ | 2,198 | $ | 1,939 | ||||
| Total GEOs | 3,352 | 2,662 | 7,047 | 4,750 | ||||||||
Reconciliation of Adjusted Cash Flows from Operating Activities:
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (In thousands of dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Cash provided by operating activities | $ | (514 | ) | $ | (1,002 | ) | $ | 513 | $ | (4,335 | ) | |
| Caserones royalty distributions | 1,855 | 2,454 | 3,489 | 3,352 | ||||||||
| Adjusted cash flows from operating activities | $ | 1,341 | $ | 1,452 | $ | 4,002 | $ | (983 | ) | |||
Reconciliation of EBITDA and Adjusted EBITDA:
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (In thousands of dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Income (loss) before income taxes | $ | (3,430 | ) | $ | (3,095 | ) | $ | (5,665 | ) | $ | (6,740 | ) |
| Finance expense | 1,080 | 1,270 | 2,145 | 2,511 | ||||||||
| Depletion, depreciation, and direct royalty taxes | 1,369 | 790 | 3,788 | 1,642 | ||||||||
| EBITDA | $ | (981 | ) | $ | (1,035 | ) | $ | 268 | $ | (2,587 | ) | |
| Attributable revenue from Caserones royalty | 2,753 | 3,206 | 4,806 | 5,432 | ||||||||
| Equity income from investment in Caserones royalty | (1,411 | ) | (1,340 | ) | (2,208 | ) | (2,255 | ) | ||||
| Share-based payments | 1,354 | 132 | 1,543 | 225 | ||||||||
| Loss (gain) on revaluation of investments | (1,142 | ) | 1,383 | (1,226 | ) | 709 | ||||||
| Loss (gain) on sale of marketable securities | 1,535 | 17 | 1,946 | 459 | ||||||||
| Foreign exchange loss (gain) | 139 | 797 | 255 | 965 | ||||||||
| Gain on revaluation of derivative liabilities | 66 | (188 | ) | 107 | 398 | |||||||
| Loss on revaluation of receivables | – | (124 | ) | – | (124 | ) | ||||||
| Other losses | 2,326 | – | 2,326 | – | ||||||||
| Impairment | – | – | 45 | – | ||||||||
| Adjusted EBITDA | $ | 4,639 | $ | 2,848 | $ | 7,862 | $ | 3,222 | ||||
1 Refer to the “Non-IFRS financial measures” section below or on page 29 of the Q2 2024 MD&A for more information on each non-IFRS financial measure. These financial measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
2 Refer to the “Non-IFRS financial measures” section below and on page 29 of the Q2 2024 MD&A for more information on each non-IFRS financial measure.
3 Refer to the “Non-IFRS financial measures” section below and on page 29 of the Q2 2024 MD&A for more information on each non-IFRS financial measure.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219519
Vancouver, British Columbia–(Newsfile Corp. – August 9, 2024) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX“) is pleased to announce that it has completed the closing and drawn down the $35 million loan (the “Loan“) contemplated in the credit agreement (the “Credit Agreement“) between the Company, its subsidiary, EMX Chile SpA (“EMX Chile“), and a wholly-owned subsidiary (the “Lender“) of Franco-Nevada Corporation (“Franco-Nevada“) (NYSE and TSX:FNV), which was previously announced in the Company’s news release dated June 20, 2024. The Company used the proceeds of the Loan to repay the $34.42 million outstanding balance of the loan owed to a Fund managed by Sprott Resource Lending Corp. (“Sprott“), to pay the Lender a commitment fee equal to 1% of the principal amount of the Loan and for general working capital purposes.
The Company is pleased to further develop its working relationship with Franco-Nevada, a key EMX shareholder. In addition to the Loan arrangement, EMX and Franco-Nevada have jointly syndicated royalty purchases (e.g., Caserones) and are actively engaged in a joint venture seeking new royalty financing opportunities.
Credit Agreement – The Loan is structured as a $35 million senior secured term loan facility which matures on July 1, 2029. Interest is payable monthly at a rate equal to the three-month SOFR (i.e., Secured Overnight Financing Rate) plus the applicable margin based on the ratio of the Company’s net debt to adjusted EBITDA (see table below), adjusted quarterly.
| Ratio of Net Debt / Adjusted EBITDA: | Applicable Interest Rate (per annum): |
| < 1.00:1 | Term SOFR plus 300 basis points |
| >= 1.00:1 and <1.50:1 | Term SOFR plus 325 basis points |
| >= 1.50:1 and <2.00:1 | Term SOFR plus 350 basis points |
| >= 2.00:1 and <3.00:1 | Term SOFR plus 375 basis points |
| >= 3.00:1 | Term SOFR plus 425 basis points |
During each year, up to $10 million of the Loan may be voluntarily prepaid without penalty, on a cumulative basis.
The Loan is secured by a general security agreement over the assets of EMX and share pledges by EMX and EMX Chile of certain of their subsidiaries or other equity interests, with the Lender retaining the ability, at any time, to designate certain material subsidiaries of the Company to be guarantors of the Loan and provide similar security. Certain covenants under the Credit Agreement, including restrictions on incurring indebtedness and encumbrances, shall apply to the Company and its subsidiaries.
All amounts referred to herein are to United States dollars.
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.
About Franco-Nevada – Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol “FNV” on both the Toronto and New York stock exchanges.
For further information contact:
David M. Cole
President and CEO
Phone: (303) 973-8585
Dave@EMXroyalty.com
Isabel Belger
Investor Relations
Phone: +49 178 4909039
IBelger@EMXroyalty.com
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, but which 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 the Company being unable to comply with the covenants under the Credit Agreement, including the repayment of any amounts owing under the Loan, 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 March 31, 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219316