- EMX Royalty Corporation (EMX) intends to deliver the notice to Zijin Mining Group after recent communication regarding the company’s NSR
- According to EMX, recent communication from Zijin indicated that the royalty rate would be reduced from 0.5 per cent to 0.125 per cent
- EMX does not believe that the circumstances which would have triggered the reduction of the royalty rate have occurred
- The company has not ruled out the option for amicable dialogue to reach a mutual agreement
- EMX is a precious, base, and battery metals royalty company
- Shares in EMX Royalty Corporation (EMX) are down 9.39 per cent, trading at $2.80 per share
EMX Royalty Corporation (EMX) intends to deliver the notice to Zijin Mining Group after recent communication regarding the company’s NSR.
According to the Net Smelter Returns Royalty Agreement dated March 16, 2010, EMX is entitled to a 0.5 per cent royalty on the Timok Project in Serbia.
According to EMX, recent communication from Zijin indicated that the royalty rate would be reduced from 0.5 per cent to 0.125 per cent.
EMX claims that Zijin has since failed to respond to correspondence challenging the changes to the royalty rate and seeking clarification.
The royalty agreement does contain a provision that the royalty rate would be reduced under certain conditions, one of which is that Freeport McMoRan Copper & Gold Inc. or any of its affiliates acquire direct, undivided, ownership interest in the properties mentioned in the royalty agreement.
EMX does not believe that the circumstances which would have triggered the reduction of the royalty rate have occurred and that, therefore, the royalty rate would remain at 0.5 per cent.
The company believes that the notice of arbitration is necessary to preserve its royalty interest rights. EMX is under the understanding that production has commenced at the Timok Project, making protecting its NSR interests even more necessary.
While EMX intends to deliver the notice of arbitration to Zijin, the company has not ruled out the option for dialogue that would allow both parties to reach a mutually acceptable outcome before arbitration proceedings begin.
EMX is a precious, base, and battery metals royalty company. The company’s royalty and exploration portfolio mainly consists of properties in North America, Europe, Turkey, Australia, Chile, and Haiti.
Shares in EMX Royalty Corporation (EMX) are down 9.39 per cent, trading at $2.80 per share as of 11:21 am EST.