Sale of Dugbe Gold Royalty for up to $20m
Ecora sells 2% gold royalty on Dugbe Project to Elemental Altus for up to $20m cash.
- Total consideration $20.0m
- Upfront cash payment $16.5m
- Contingent consideration $3.5m
- Carrying value at 31 December 2024 $5.9m
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Ecora (LSE/TSX: ECOR, OTCQX: ECRAF) announces that it has agreed to sell a wholly-owned subsidiary, which holds a 2% Net Smelter Return royalty over the development stage Dugbe Gold Project in Liberia, to a subsidiary of Elemental Altus Royalties Corp. for a total consideration of up to $20.0m.
The consideration is comprised of a $16.5m upfront cash payment and contingent consideration of up to $3.5m payable as follows:
- $700,000 upon commencement of project construction; and
- $2,800,000 upon commencement of commercial production.
The $3.5m contingent consideration is payable in full in the event the project is built to a smaller scale than that contemplated in the Dugbe Gold Project Feasibility Study (effective date 13 June 2022) upon the cumulative production of 150koz of gold.
Ecora acquired the Dugbe royalty in 2012, which had a carrying value of $5.9m as at 31 December 2024.
The transaction is expected to close in the coming days.
Marc Bishop Lafleche, Chief Executive Officer, commented:
"The transaction unlocks value from a development stage asset in a non-core commodity and will enable us to accelerate the Group's deleveraging, as well as providing further flexibility to acquire cash generative royalties within our targeted commodity basket in time. The transaction highlights the substantial value within Ecora's wider royalty portfolio outside the core producing assets."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.