EMX Royalty Corporation is excited to announce a new exploration and option agreement with Alpha Future Funds S.C.S, a private investment fund based in Luxembourg. The deal covers EMX’s Sulitjelma Project in Norway and includes a series of financial and operational commitments.
Under the agreement, EMX will receive an initial cash payment of $50,000. Alpha can acquire a 100% interest in the Sulitjelma Project by fulfilling specific work commitments within one year. Upon option exercise, EMX will benefit from deferred cash payments, advance royalty payments, milestone payments, and a 2% Net Smelter Return (NSR) royalty.
Commercial terms overview:
- Initial cash payment: $50,000 upon agreement execution.
- Work commitments: Alpha must complete specified exploration activities by the end of the first year.
- Deferred payments: Additional cash payments to EMX upon option exercise.
- Exploration spending: Alpha will invest $4,000,000 in the project by the 5th anniversary of the agreement.
- Royalty payments: Annual advance royalties following the completion of deferred payments.
- NSR royalty: An uncapped 2% royalty on future production.
- Milestone payments: Payments tied to project milestones, including the start of commercial production.
Project overview: The Sulitjelma Project is located in the early Paleozoic VMS belt in north-central Norway. Historically, the Sulitjelma District has been a significant mining area, with operations from 1891 to 1991 producing over 25 million tonnes of ore with notable grades of copper, zinc, silver and gold. The district has seen minimal exploration since the closure of the mines, with promising targets identified through airborne geophysical surveys and soil sampling.
EMX has compiled historical data and developed 3D models of past mine workings, identifying new drill targets along strike and down dip from historical mineralization zones.
