Elemental Altus Royalties Sells High-Potential Diba Gold Project in Mali for Cash and Royalties

Elemental Altus Royalties Corp. (TSX-V: ELE) is an income-generating precious metals royalty company with 10 producing royalties and a portfolio of pre-production and exploration stage assets across 14 jurisdictions. The Company has executed an agreement to sell its Diba Gold Project in western Mali to Allied Gold Corporation. The sale provides near-term cash flow and royalties on future production from Diba, adding to Elemental Altus' portfolio of producing royalty assets.

Another near-term producing royalty for the portfolio, Elemental Altus will receive a Net Smelter Return (NSR) royalty of up to 3% on future gold produced from Diba. Additionally, Elemental Altus will receive $1 million on closing, plus a further $5 million in payments tied to production milestones and commercial production.

Diba's location, just 15 km from Allied Gold’s flagship Sadiola Gold Mine, allows for a fast track to production. Initial mining will likely focus on Diba's oxide deposits containing over 199,000 ounces with an average grade of 1.52 g/t gold. Allied plans infill drilling to better define Diba's resource potential and incorporate it into the Sadiola production schedule as soon as 2024.

With Sadiola’s infrastructure nearby, Diba offers Elemental Altus near-term cash flow from the NSR royalty and payments while minimizing typical mine development risks. The large, highly prospective land package also provides substantial upside exploration potential.

For investors, the deal highlights Elemental Altus' skill at generating high-value royalties. It transforms an early-stage exploration asset into a de-risked royalty with near-term revenue potential. As Elemental Altus continues acquiring royalties on producing mines and late-stage projects, cash flow and dividends should grow.