EMX Announces Acquisition of a Royalty on the Chapi Copper Mine Property in Peru

Core Viewpoint - EMX Royalty Corporation has announced the acquisition of a royalty interest in the Chapi copper mine in Peru, which is expected to enhance its portfolio with significant upside potential in a prolific mining region [1][4]. Summary by Sections Acquisition Details - EMX will acquire a royalty interest of up to 2% of Net Smelter Returns (NSR) on minerals produced from the approximately 26,000 hectare property owned by Minera Pampa de Cobre S.A.C. (MPC) [2] - The agreement includes a Facilities Royalty and an Area of Interest (AOI) Royalty, both also capped at 2% NSR, with specific conditions for reduction after July 1, 2034 [2] - EMX has paid US$3,000,000 for the first 1$7,000,000 until February 28, 2025 [2] Security and Guarantees - EMX's right to receive royalty payments is secured by a guarantee from Quilla Resources Inc. and various security instruments in Peru, subordinated to Hartree Partners, LP [3] Company Background - Quilla Resources Inc., which owns MPC, was formed in December 2024 and aims to build an intermediate-sized base metals company, led by experienced mining executive Victor Gobitz [5] Chapi Mine Overview - The Chapi Mine has historical production of approximately 5,000 to 8,500 tonnes per annum of copper from 2006 to 2012, with grades reported between 0.59% and 1.04% copper [7] - The mine has been under care and maintenance since 2012, with principal permits remaining in place [8] Geological Context and Exploration Potential - The Chapi Mine is located in a region known for significant porphyry copper deposits, contributing to Peru's status as the second-largest copper producer globally [9] - The land package includes well-mineralized horizons with potential for resource expansion and exploration for higher-grade copper mineralization [10][11] Restart Plans - Quilla's plan is to restart operations at the Chapi Mine, targeting an initial production of 10,000 tonnes per annum of copper cathode, with production expected to commence in the first half of 2026 [12]