Altius Provides 1st Quarter 2020 Project Generation Update
07 Avril 2020 - 6:00PM
Business Wire
Altius Minerals Corporation (“Altius”) (ALS:TSX) (ATUSF: OTCQX)
is pleased to provide an update on its Project Generation (“PG”)
business activities and performance of its related junior equities
portfolio for the first quarter of 2020.
The market value of the junior equities portfolio at March 31,
2020 was $34 million, including two private company investments at
book value, compared to $54.1 million at December 31, 2019. The
decline in the portfolio value during the quarter is consistent
with market value decreases that have been experienced within the
broader junior mining sector related to the COVID-19 pandemic.
During the quarter, net cash proceeds of $982,000 were generated
from the sales of certain equities, with no new equity purchases.
An updated list of the public equity holdings is posted to the
Altius website at
http://altiusminerals.com/projects/junior-equities.
During the quarter the company
entered into a proposed purchase agreement with Antler Gold Inc.
(“Antler”) for the Wilding Lake gold project. The property was
originally acquired by Antler from Altius under option
agreements entered in 2016 and 2017 in exchange for 8.22 million
common shares of Antler. Under the current agreement, which remains
subject to the satisfaction of certain conditions including the
approval of the TSX Venture Exchange, Altius will relinquish its
8.22 million common shares of Antler in return for the
re-acquisition of 100% ownership of the project. Wilding Lake is
contiguous with Marathon Gold Corporation’s Valentine Lake gold
project.
Altius has collaborated with AbraPlata Resource Corp.
(TSXV:ABRA ) (“AbraPlata”) in its recent acquisition of the
La Coipita project, located in San Juan province, Argentina. The
agreement offers AbraPlata an attractive, underexplored
district-scale property located in the prolific Miocene
porphyry-epithermal belt which hosts multiple drill-ready porphyry
copper-gold targets. Altius is a substantial shareholder of
AbraPlata and holds the exclusive right to acquire an underlying
1.1% net smelter return royalty on the La Coipita project -
https://www.abraplata.com/news-releases/abraplata-announces-option-to-acquire-the-la-coipita-project.
Adia Resources Inc., (“Adia”) a private company 54% owned by
Altius, has recently completed a second phase of drilling at its
Lynx diamond project in northern Manitoba, to follow up the three
holes drilled in 2019 on its Eastern Bay target. The 2020 program
included 7 drill holes comprising 2,822 metres on both the Eastern
Bay and Western Bay targets. The target ultramafic rocks were
intersected in 5 of the 7 drill holes. Adia has an agreement with
De Beers Group (“De Beers”), which is providing in-kind technical
support in exchange for shares in Adia. All drill core is currently
secured at De Beers technical facilities in Sudbury, Ontario, where
detailed logging and sampling for microdiamond analysis will be
carried out on the 2020 core in the weeks ahead, with results
anticipated later this summer subject to anticipated delays related
to COVID-19. A full summary of Adia’s activities is available at
https://www.adiaresources.com/.
Portfolio Company and Project Updates
Highlights from the first quarter of 2020 are listed below. Most
of the companies held within the junior equities portfolio have
been impacted at their various operations and/or exploration
activities by the COVID-19 pandemic and have announced reduced
field operations on a temporary basis.
Adventus Mining Corporation (TSXV:ADZN) (“Adventus”)
earlier in the year had reported plans of a US$7 million
exploration campaign in 2020, to include drilling of several
targets at its Curipamba, Pijili and Santiago projects in Ecuador -
http://adventusmining.com/news/122538. On March 18, 2020
Adventus announced a temporary suspension of its planned
exploration and development activities in response to the
Government of Ecuador's declaration of a state of emergency as a
measure to prevent the spread of COVID-19. Adventus is committed to
providing significant ongoing emergency humanitarian aid to
alleviate pressures faced in the communities surrounding its
development and exploration sites, and Altius has agreed to
contribute financially to this worthwhile cause. Altius has
communicated its willingness to provide similar emergency funding
to other impacted royalty and exploration partners.
Alderon Iron Ore Corp. (TSX:IRON) (“Alderon”) provided an
update on April 1, 2020 with respect to its US$14-million loan
facility due to Sprott Resource Lending and its failure to repay
the loan facility as of the extended maturity date of March 31,
2020. Alderon’s obligations under the loan facility are secured
against the Kami project and as Alderon did not repay the loan
facility Sprott may realize on its security and Alderon could lose
its interest in the Kami project. Alderon has indicated that it
continues to evaluate potential alternatives, including a corporate
transaction or extension of the loan facility, but there is no
certainty that any alternative will be realized. As well as holding
shares in Alderon, Altius is a participant in the Sprott loan
facility to the extent of US$2 million.
Evrim Resources Corp. (TSX: EVM) (“Evrim”) made multiple
announcements during the quarter, the most significant of which is
regarding the continued advancement of the Ermitaño project by
First Majestic Silver Corp. (“First Majestic”), where Evrim
maintains a 2% net smelter royalty. First Majestic reported on
March 30, 2020 that Indicated Mineral Resources at the Ermitaño
project had increased by 245% to 4.7 million ounces of silver and
311,000 ounces of gold, for year-end 2019 compared to the 2018
Indicated Resource. Moreover, First Majestic reported capital cost
estimates for 2020 of US$29.1 million related to Ermitaño mine
development (2019 AIF; March 30, 2020). A pre-feasibility study
detailing development and production plans is expected to be
released in the fourth quarter of this year, as reported by First
Majestic on February 24, 2020 -
https://www.evrimresources.com/news/2020/evrim-announces-resource-upgrade-at-the-ermitano-project/.
Wolfden Resources Corporation (TSXV: WLF) (“Wolfden”)
announced a US$4.5 million (USD) agreement in January to
forward-sell certain timber rights from its wholly owned Pickett
Mountain Zn-Pb-Cu-Ag-Au project in Maine, USA -
https://www.wolfdenresources.com/wp-content/uploads/2020/01/WLFJan152020.pdf.
Altius has received 20% or US$600,000 of the first US$3 million
received by Wolfden related to the timber right sale as part an
underlying royalty agreement. Wolfden also announced its submission
of a rezoning petition to the Maine Land Use Planning Commission
(LUPC) in order to rezone its Pickett Mountain Project in Northern
Maine. The re-zoning is an initial step in a multi-agency process
to review the merits of a potential mine development on the
property.
Lawrence Winter, Ph.D., P.Geo., Vice‐President of Exploration
for Altius, a Qualified Person as defined by National Instrument
43-101 - Standards of Disclosure for Mineral Projects, is
responsible for the scientific and technical data presented herein
and has reviewed, prepared and approved this release.
More information on Altius projects can be found at
http://www.altiusminerals.com/.
About Altius Altius’s strategy is to create per share
growth through a diversified portfolio of royalty assets that
relate to long life, high margin operations. This strategy further
provides shareholders with exposures that are well aligned with
sustainability-related global growth trends including the
electricity generation transition from fossil fuel to renewables,
transportation electrification, reduced emissions from steel making
and increasing agricultural yield requirements. These each hold the
potential to cause increased demand for many of Altius’s commodity
exposures including copper, renewable based electricity, several
key battery metals (lithium, nickel and cobalt), clean iron ore,
and potash.
Altius has 41,804,196 common shares issued and outstanding that
are listed on Canada’s Toronto Stock Exchange. It is a member of
both the S&P/TSX Small Cap and S&P/TSX Global Mining
Indices.
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version on businesswire.com: https://www.businesswire.com/news/home/20200407005676/en/
For further information, please contact Chad Wells
(cwells@altiusminerals.com) or Flora Wood
(fwood@altiusminerals.com) at 1.877.576.2209
Altius Minerals (TSX:ALS)
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