Ecora Resources completes sale of subsidiary to Elemental Altus Royalties

Core Insights - Ecora Resources has finalized the sale of a wholly owned subsidiary holding a 2% net smelter return (NSR) royalty on the Dugbe Gold Project in Liberia to Elemental Altus Royalties for up to $20 million, with $16.5 million received upon completion and up to $3.5 million in contingent payments [1][2] Transaction Details - The sale agreement includes contingent payments structured around project milestones, with $700,000 due at the start of construction and $2.8 million payable upon the start of commercial production [2] - If the project scope is reduced from the feasibility study, the entire contingent payment of $3.5 million will be payable once production reaches 150,000 ounces of gold [2] - As of December 2024, the carrying value of the Dugbe NSR royalty was $5.9 million, which Ecora acquired in 2012 [2] Operational Updates - Ecora, in partnership with Vale Base Metals, reported successful cobalt processing tests at the Voisey's Bay mine, achieving an average throughput rate of 93.7% over 90 days [3] - The company holds a 70% interest in the cobalt stream from the Voisey's Bay mine, with entitlements to 22.82% of cobalt production until specific delivery thresholds are met [3] - In February, Ecora expanded its copper interests by securing a $50 million agreement with Moxico Resources for the Mimbula copper mine in Zambia [3] Strategic Implications - The transaction supports Ecora's strategy to enhance its copper growth profile and drive earnings across various time frames, covering an estimated reserve-based life of mine of 11 years, with potential for extension [4]