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Canada-based First Mining Gold has agreed to offload its non-core royalty portfolio to Elemental Altus Royalties in a cash-stock deal worth C$6.7m ($4.98m).

The deal consideration includes C$4.7m in cash and 1,598,162 common shares of Elemental Altus.

Under the deal, First Mining Gold will sell 19 royalties across Mexico, the US, Canada and Burkina Faso.

These royalties include a 2.0% net smelter return (NSR) royalty on the Auteco Minerals-operated Pickle Crow development stage gold project in Ontario, Canada.

The royalty portfolio sale also comprises a 1.5% NSR royalty on the Big Ridge Gold-operated Hope Brook Gold development stage project, in addition to other royalties on exploration and development projects.

First Mining CEO Dan Wilton said: “Following the sale of our Goldlund royalty in December, we are very excited to announce the sale of our remaining non-core royalty portfolio to Elemental Altus.

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“The assembly of our royalty package has been in process over the last few years and this monetisation transaction will provide near-term liquidity while also retaining upside exposure to a premier emerging royalty company in Elemental Altus. 

Proceeds from the sale will be used by First Mining to advance its Springpole and Duparquet gold projects in Canada.

Elemental Altus CEO Frederick Bell said: “The acquisition of this royalty portfolio materially expands our development pipeline in Canada.

“The Pickle Crow and Hope Brook projects are both former operating gold mines, which have reportedly produced over 2.2 million ounces of gold historically and are currently the subject of extensive exploration and investment.

“The portfolio further expands our North American presence and is in line with our strategy of acquiring high-quality royalties.”

Subject to customary closing conditions among others, the deal is planned to complete on or before 14 February 2023.