Cornish Metals has finalized the sale of its royalty interests in the Mactung and Cantung tungsten projects located in Northern Canada to Elemental Altus Royalties, securing a total consideration of $4.5 million CAD (approximately $3.5 million USD).
Strategic Financial Boost
The agreement, initially announced in June 2024, stipulates an immediate payment of $3 million CAD to Cornish Metals, with the remaining $1.5 million CAD due in 12 months. This transaction significantly bolsters Cornish Metals’ financial position, enabling the company to focus on its core projects and growth strategies.
Historical Context and Agreement Details
Originally acquired by Strongbow Exploration in March 2016 from Teck Resources, the royalties became part of Cornish Metals’ portfolio following a name change in July 2020. Elemental Altus will also fulfill a deferred consideration of $1.5 million CAD to Teck Resources, contingent upon a development decision at Mactung or the recommencement of production at Cantung.
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Royalty Specifics
The royalties include a substantial 4% net smelter returns (NSR) royalty on the Mactung tungsten project. This strategic acquisition allows Elemental Altus to enhance its portfolio with high-potential tungsten assets, aligning with its growth strategy in the resource sector.
Executive Insights
“This sale represents a significant step forward for Cornish Metals, providing us with additional capital to advance our key projects,” said Richard Williams, CEO of Cornish Metals. “We are pleased to partner with Elemental Altus Royalties, a company with a strong track record in managing and developing royalty interests.”
Elemental Altus Royalties CEO Frederick Bell commented, “Acquiring these royalties strengthens our position in the tungsten market and supports our long-term vision of building a diverse portfolio of high-quality royalties. We look forward to the potential development and production milestones at Mactung and Cantung.”
This transaction marks a noteworthy development in the mining sector, with Cornish Metals securing vital funds to drive its strategic initiatives while Elemental Altus fortifies its portfolio with promising tungsten assets. The Mactung and Cantung projects hold significant potential for future production, making this a mutually beneficial deal for both parties involved.
By leveraging this strategic sale, Cornish Metals is well-positioned to advance its exploration and development activities, while Elemental Altus continues to expand its influence in the mining royalty sector, underscoring the dynamic nature of the resource industry.
