VANCOUVER - EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) has finalized a Royalty Agreement with Minera Pampa de Cobre S.A.C. (MPC), securing royalties from the Chapi copper mine in southern Peru. The deal comes as mining sector analysts on InvestingPro report increasing strategic importance of copper assets in South America, with several major miners expanding their royalty portfolios in the region. The deal grants EMX up to a 2% Net Smelter Returns (NSR) royalty on minerals from the mine and surrounding areas, with an initial payment of $3 million to MPC for a 1% NSR interest.
The agreement includes a perpetual Property Royalty from the approximately 26,000-hectare mining area and a Facilities Royalty from minerals processed at Chapi's facilities, both subject to potential reduction after July 1, 2034. An Area of Interest (AOI) Royalty also applies to any land acquired by MPC within a two-kilometer radius of the property. MPC retains the option to sell a second 1% NSR to EMX for an additional $7 million until February 28, 2025. For detailed analysis of mining royalty structures and their impact on company valuations, InvestingPro subscribers can access comprehensive Pro Research Reports covering 1,400+ stocks, including leading mining companies.
EMX's royalty interests are guaranteed by Quilla Resources Inc., the Canadian parent company of MPC, with security instruments in place and subordinated to the rights of first lien lender Hartree Partners, LP.
The Chapi Mine, situated near Arequipa, Peru, has been under care and maintenance since 2012, with historical production dating back to the 1930s. Quilla recently acquired MPC and plans to restart operations, leveraging the existing infrastructure and aiming for initial production in the first half of 2026.
EMX's acquisition of the Chapi Mine royalties expands its portfolio in the Paleocene-Eocene copper-molybdenum porphyry belt, a region known for significant copper production. The company's interest in the mine is based on its potential for development and exploration, with historical resources indicating expansion opportunities for both open pit and underground mining. Mining sector experts featured on InvestingPro highlight that strategic copper assets in established mining jurisdictions are increasingly valuable as global demand for the metal continues to grow, particularly in renewable energy and electric vehicle applications.
This news release contains forward-looking statements regarding the perceived merit of the Chapi Mine and its potential for future production. EMX has not independently verified historical data but considers it relevant and reliable. The company's shares are traded on the NYSE American Exchange and the TSX Venture Exchange under the symbol "EMX". The information provided is based on a press release statement.
In other recent news, Nexa Resources (NYSE:NEXA) reported a robust third quarter in its recent earnings call, with a noteworthy 9% year-over-year increase in total consolidated net revenues, reaching $709 million. The company also saw a significant rise in adjusted EBITDA, which climbed to $183 million, marking a substantial increase from $87 million in the same quarter the previous year. Nexa Resources' net leverage ratio showed improvement and the company made significant strides on various mining projects.
In addition, the company's operational efficiencies and strategic investments have put it on a promising path to meet its full-year outlook. Nexa Resources made substantial progress on the Aripuanã project, which has now reported positive adjusted EBITDA for three consecutive quarters. The company is also undertaking the Cerro Pasco integration project, with an expected new tailings pumping system launch in 2027.
The company's liquidity improved to approximately $845 million, with a net debt to adjusted EBITDA ratio of 2.2 times. Nexa Resources remains optimistic about the market fundamentals of zinc and copper prices. These are among the recent developments for Nexa Resources.
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