EMX Royalty Announces IG Copper's Closing of the Sale of the Malmyzh Copper-Gold Porphyry Project
Vancouver, British Columbia, October 11, 2018 (TSX Venture: EMX; NYSE American: EMX) – EMX Royalty Corporation (the “Company” or “EMX”) is pleased to announce that IG Copper LLC (“IGC”) has notified EMX that the sale of the Malmyzh copper-gold porphyry project (“Malmyzh” or the "Project") to Russian Copper Company (“RCC”) for US $200 million has closed. Of this amount, US $190 million was released from escrow, with the remaining US $10 million to be held in escrow and released subject to certain conditions over the next 12 months.
The initial cash distribution to EMX by IGC will be US $65 million, which is expected to be completed in the next few weeks. A second cash distribution to EMX (up to US $4 million) will be completed upon the remaining funds being released from escrow.
EMX congratulates IGC on its outstanding accomplishments, including the early-stage exploration work leading to the Malmyzh district-scale discovery, the completion of demanding work programs that advanced the Project according to the requirements of the Russian Federation, and the execution of the process that culminated in the sale of Malmyzh to RCC. EMX also expresses genuine appreciation to the Ministry of Natural Resources, Rosnedra, Dalnedra, and the governments of Khabarovsk Krai and the Russian Federation for the strong support given to IGC over the past several years.
In support of the sale of Malmyzh, EMX borrowed US $18.5 million from Sprott Private Resource Lending (Collector), LP (“Sprott Loan”) and then loaned the US $18.5 million to IGC (“EMX Loan”). Both the Sprott Loan and the EMX Loan have been re-paid.
In connection with the Sprott Loan, EMX issued 381,321 common shares and paid cash fees of US $550,000 and US $185,000 in interest to Sprott. In connection with the EMX Loan, IGC issued EMX 37,000 units in IGC, reimbursed EMX for fees, interest payments and costs incurred under the Sprott Loan, and paid EMX a fee of US $550,000 (this amount is included in the initial cash distribution noted above).
Scotiabank Europe plc (“Scotiabank”), the U.K. subsidiary of The Bank of Nova Scotia, was the advisor to IGC regarding the transaction, and the London office of Norton Rose Fulbright LLP acted as legal advisers to IGC.
About EMX. EMX leverages asset ownership and exploration insight into partnerships that advance our mineral properties, with EMX receiving pre-production payments and retaining royalty interests. EMX complements its royalty generation initiatives with royalty acquisitions and strategic investments.
EMX’s strategic investment in IGC resulted from the Company’s recognition of Malmyzh as an early-stage opportunity with excellent discovery potential in 2011. The closing of the Malmyzh sale is a milestone event for EMX.
Please see www.EMXroyalty.com for more information.
About IGC. IGC, a privately held company, is led by President and CEO Thomas E. Bowens, and includes key personnel with a track record of exploration discovery and project development in the Russian Far East.