EMX Royalty Corporation Completes Asset Purchase Transaction for Oijarvi and Solvik Gold Projects | 2021-06-25 | Press Releases
Vancouver, British Columbia – (Newsfile Corp. – June 25, 2021) – EMX Royalty Company (US NYSE: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX”) is pleased to announce that it has completed the previously announced asset purchase transaction under which Gold Line Resources Ltd. (TSXV: GLDL) (“Golden line“) acquired a 100% stake in Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) (“Agnico“) Oijärvi Gold Project located in central Finland and Solvik Gold Project located in southern Sweden (collectively, the”Projects“) for an aggregate purchase price of US $ 10 million consisting of cash and shares of EMX and Gold Line (the”Transaction“). As part of the transaction, Agnico will retain a 2% net smelter yield (“RSN“) Project royalty, of which 1% can be purchased at any time by EMX for US $ 1 million.
The Transaction was carried out under an asset purchase agreement dated March 19, 2021 (the “Agreement“) between the Company, Gold Line, Agnico, Agnico Eagle Finland Oy and Agnico Eagle Sweden AB. Following the agreement, Agnico became a shareholder of EMX and Gold Line, and EMX will increase its stake in Gold Line and receive installment cash payments from Gold Line EMX will also benefit from additional royalty exposure in two emerging gold belts in the Nordic region.
The consideration for the transaction is US $ 10 million, including US $ 7 million in cash, US $ 1.5 million in ordinary shares of EMX (“EMX shares“) and US $ 1.5 million in Gold Line common stock (“Gold Line Shares“), which must be paid to Agnico as follows:
|Dated||Gold Line Cash Payments (USD)||EMX shares
|Gold Line Shares (USD)|
|At the signing of the purchase contract||$ 750,000 (paid)||$ 375,000 (issued)||$ 375,000 (issued)|
|On the first anniversary of the purchase contract||$ 1,500,000||$ 500,000||$ 500,000|
|On the occasion of the second anniversary of the purchase contract||$ 1,750,000||$ 625,000||$ 625,000|
|On the occasion of the third anniversary of the purchase contract||$ 3,000,000||–||–|
|Total||$ 7,000,000||$ 1,500,000||$ 1,500,000|
In addition, EMX will receive cash and stock payments from Gold Line as shown in the table below:
|Dated||Cash payments (USD)||Gold Line Shares
|At the signing of the purchase contract||–||$ 375,000 (issued)|
|On the first anniversary of the purchase contract||$ 250,000||$ 250,000|
|On the occasion of the second anniversary of the purchase contract||$ 312,500||$ 312,500|
|Total||$ 562,500||$ 937,500|
The EMX Shares and Gold Line Shares issuable in connection with the Transaction are based on the volume weighted average price for the 20 trading days (the “20-day VWAP“) before the date of issue, with the exception of the first tranche which was based on the VWAP 20 days before the date of entry into force of the Agreement on 18 March 2021.
About EMX. EMX is a precious metals, base and battery royalty company. EMX investors benefit from discovery, development and commodity pricing options, while limiting exposure to the risks inherent in operating companies. The Company’s common shares are listed on the NYSE US Stock Exchange and the TSX Venture Exchange under the symbol EMX. Please visit www.EMXroyalty.com for more information.
For more information contact:
David M. Cole
President and CEO
Telephone: (303) 979-6666
Director of Investor Relations
Telephone: (303) 973-8585
Investor Relations (Europe)
Telephone: +49 178 4909039
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.
This press release may contain “forward-looking statements” which reflect the Company’s current expectations and projections regarding its future results. These forward-looking statements may include statements regarding the perceived value of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, pricing. of the precious and base metals market, or other statements which are not statements of fact. When used in this press release, words such as “estimate”, “intend”, “expect”, “anticipate”, “will”, “believe”, “potential”, ” on the rise ”and similar expressions are intended to identify forward-looking statements which, by their very nature, do not guarantee the future operational or financial performance of the Company, and are subject to risks and uncertainties and other factors which could cause the actual results, performance, outlook or opportunities of the Company to differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of funding, inability to identify commercially viable mineral reserves, fluctuations in the market value of raw materials, difficulties in obtaining the required approvals for project development compliance costs, project funding expectations from joint venture partners 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 press release or as of the date otherwise specifically stated herein. Due to the risks and uncertainties, including the risks and uncertainties identified in this press release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the year ended December 31, 2020 (the “MD&A”), and the most recent Annual Information Form (the “Annual Information Form”) filed for the fiscal year ended December 31, 2020, actual events may differ materially from current expectations. Further information on the Company, including the MD&A, Annual Information Form and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at ‘address www.sec.gov.
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