- EMX Royalty Corporation (EMX) has executed an option to a purchase agreement with Intrepid Metals for the Mesa Well property
- The agreement provides EMX with cash and share payments during Intrepid’s earn-in period
- Intrepid can earn 100-per-cent interest in the project before the fifth anniversary of the agreement by making execution and staged option payments totalling US$350,000
- EMX is a precious, base and battery metals royalty company
- EMX Royalty Corporation opened the day’s trading at C$2.43 per share
EMX Royalty Corporation (EMX) subsidiary Bronco Creek Exploration has executed an option to a purchase agreement with Intrepid Metals for the Mesa Well property.
The agreement provides EMX with cash and share payments during Intrepid’s earn-in period. In addition, upon earn-in, EMX will get a retained 2 per cent net smelter return (NSR) royalty interest, annual advance royalty payments, and certain milestone payments.
The Mesa Well Project is located in south-central Arizona’s porphyry copper belt, approximately 100 kilometres northeast of Tucson.
The principal target is a structurally dismembered and rotated porphyry copper-molybdenum system concealed beneath strongly tilted, post-mineral cover rocks.
The agreement with Intrepid is an example of EMX’s execution of the royalty generation aspect of its business model.
Intrepid can earn a 100-per-cent interest in the project before the fifth anniversary of the agreement by making execution and staged option payments totalling US$350,000, delivering 600,000 common shares of Intrepid, and incurring $2,000,000 in exploration expenditures.
After earn-in, EMX will retain a 2 per cent NSR royalty interest on the project and will receive certain annual advance royalty (AAR) payments.
In addition, Intrepid has agreed to make payments to EMX at certain project milestones:
- $200,000 upon completion of a preliminary economic assessment
- $500,000 upon completion of a prefeasibility study
- $1,000,000 upon completion of a feasibility study
The Mesa Well Project is covered by State of Arizona exploration leases that were acquired as a result of EMX’s southwestern U.S. porphyry copper royalty generation program.
The Mesa Well target area is covered by highly tilted, post-mineral, tertiary gravels.
EMX is a precious, base and battery metals royalty company.
EMX Royalty Corporation opened the day’s trading at C$2.43 per share.
