Canada-based mining and resources firm Altius Minerals has completed the acquisition of 11 coal and potash-producing royalties from Prairie Mines & Royalty, a subsidiary of Sherritt International.
Altius partnered with Liberty Metals & Mining, a subsidiary of Boston-based Liberty Mutual Insurance, as well as the chairman of Haywood Securities and his affiliated trusts to complete the transaction.
Each partner will proportionately own Prairie Royalties based on their share in the acquisition value, where Altius’ 52.36% represents $240.9m.
In addition to acting as the general partner of the limited partnerships holding the royalty interests,
Altius will manage the day-to-day operations of the royalty business.
The company has also acquired Sherritt’s 50% stake in the Carbon Development Partnership (CDP) for $21m and has signed a deal with a subsidiary of Ontario Teachers’ Pension Plan to buy the remaining share for an additional $21m within 30 days.
Altius CEO Brian Dalton said that this represents the achievement of a multi-year goal to develop the scale of the minerals royalty sector, that the board and management of Altius had set for itself.
"We look forward now to continuing to deliver strong results from our project generation business and further building upon this leading diversified minerals royalty portfolio," Dalton said.
To finance the purchases, Altius entered into a $140m five-year secured credit facility with lenders, including Sprott Resource Lending, Earlston Investments and the chairman of Haywood Securities and his affiliated trusts.
Scotiabank and Salman Partners provided financial advisory services to Altius on the transaction.
Altius has royalty interests in 12 producing assets, including five coal mines and six potash mines in western Canada, and a royalty on the producing Voisey’s Bay nickel-copper-cobalt mine in Labrador.