- Posted by Jodi Cassidy
- On February 4, 2022
FEBRUARY 4, 2022, TORONTO, ON – Star Royalties Ltd. (the “Company” or “Star Royalties”) (TSXV: STRR, OTCQX: STRFF) is pleased to highlight an announcement by Gold Mountain Mining Corp. (“Gold Mountain”) (TSX: GMTN, OTCQB: GMTNF, FRA: 5XFA), dated February 3, 2022, regarding first ore shipment at its Elk Gold Mine (“Elk Gold”) located in BC, Canada. Star Royalties owns a 2% net smelter return royalty on Elk Gold.
First Ore Shipment Highlights
- Gold Mountain has completed its first delivery of ore to New Gold Inc.’s (“New Gold”) (TSX, NYSE American: NGD) New Afton processing plant located 133 km from Elk Gold.
- The ore was mined from Elk Gold’s 1300 vein located at the footwall of historic Pit 2, which was last mined from 2012 to 2014 at an average gold grade of 16.7 g/t.
- Gold Mountain’s ore purchase agreement (“OPA”) with New Gold allows Gold Mountain to both operate and scale mine operations without the need for an on-site mill. As a result, Gold Mountain avoids unnecessary annual carbon emissions of 11,500 tonnes, annual power consumption of 10.2 megawatt hours, and annual water consumption of over 14 million litres.
- Under the OPA, Gold Mountain will deliver to New Gold 70,000 tonnes of high-grade ore per annum in years 1-3 and then up to 350,000 tonnes per annum in years 4-11. The metal payable split from the OPA is 89% to Gold Mountain and 11% to New Gold. The OPA allows Gold Mountain to be paid on a monthly basis for all ore delivered.
Alex Pernin, Chief Executive Officer of Star Royalties, commented: “We congratulate Gold Mountain on their well-deserved revenue generation. Our Elk Gold royalty represents cash flow in a tier-one jurisdiction from a high-margin gold mine operated by a driven and highly capable team. We believe Elk Gold’s exploration and production expansion upside provide excellent wealth creation potential for our investment portfolio, and we look forward to the results of Gold Mountain’s ongoing Phase 3 drill program.”
For the full Gold Mountain news release, please visit gold-mountain.ca.
For more information, please visit our website at starroyalties.com or contact:
|Alex Pernin, P.Geo.
Chief Executive Officer and Director
+1 647 801 3549
Head of Investor Relations
+1 647- 287 3846
ABOUT STAR ROYALTIES LTD.
Star Royalties Ltd. is a precious metals and green royalty and streaming investment company. The Company created the world’s first carbon negative gold royalty platform and offers investors gold exposure with an increasingly negative carbon footprint. The Company’s objective is to provide wealth creation through accretive transaction structuring and asset life extension with superior alignment to both counterparties and shareholders.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this news release may constitute “forward-looking statements”, including those regarding the strategies and business plans of the Company. Forward-looking statements are statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. When used in this news release, words such as “estimates”, “expects”, “plans”, “anticipates”, “will”, “believes”, “intends” “should”, “could”, “may” and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Star Royalties to be materially different from future results, performances or achievements expressed or implied by such statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results, performances or achievements to differ materially from such forward-looking statements, including, without limitation, the ability of the parties to successfully implement the pilot project, the ability to attract farmers into the pilot project, the ability to achieve carbon credits from the pilot project, changes in business plans and strategies, market conditions, share price, best use of available cash, the ability of the Company to identify and execute future acquisitions on acceptable terms or at all, risks inherent to royalty and streaming companies, title and permitting matters, metal and mineral commodity price volatility, discrepancies between actual and estimated production of carbon credits, and development risks relating to the parties which produce the carbon credits from the pilot project, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global social and economic climate, natural disasters and global pandemics, including COVID-19, dilution, and competition. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should exercise caution in relying upon forward-looking statements and the Company undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.