Elemental Royalties Corp.(OTCMKTS:ELEMF) has made an announcement on April 4, 2022, about completing the previously announced acquisition of a gold purchase and sale agreement with Rambler Metals and Mining Canada Limited, a wholly owned subsidiary of Rambler Metals and Mining PLC. The Ming Copper-Gold Mine in Newfoundland and Labrador in Canada is owned by them.
Market Reaction
On Monday, ELEMF stock gained 3% to $1.25 with more than 28K shares, compared to its average volume of 18K shares. The stock moved within a range of $1.2400 – 1.2600 after opening trade at $1.24.
Elemental Royalties Completes Acquisition of Ming Gold Stream
Frederick Bell, Elemental’s Chief Executive Officer, commented that completing the acquisition of the Ming Gold Stream is their first transaction with a Canadian mine. It will provide the necessary cash flow to Elemental, while boosting exposure to Tier 1 mining jurisdictions.
The equity financing was completed at a significant premium to the implied price of the all-share Hostile Bid and further reinforces Elemental’s ability to execute on cash flowing royalties and attract new high-end shareholders.
Elemental has made a cash payment of US$11 million to Rambler, as consideration for the Ming Gold Stream. It was funded via proceeds of Elemental’s previously announced equity financing in the form of a non-brokered private placement of 9,275,000 common shares of the company, at a price of C$1.51 per Share for proceeds to Elemental of C$14,005,250. An affiliate of La Mancha Fund SCSp, a Luxembourg-based deep value fund, was involved in the financing too, with an investment of approximately US$8.5 million (approximately C$10.9 million) for 7,250,000 shares.
Key Quote
“Completing the acquisition of the Ming Gold Stream is our first transaction with a Canadian mine, providing immediate cash flow to Elemental whilst further increasing our exposure to Tier 1 mining jurisdictions,” said Frederick Bell, Elemental’s Chief Executive Officer. “The equity financing was completed at a significant premium to the implied price of the all-share Hostile Bid and further reinforces Elemental’s ability to execute on cash flowing royalties and attract new high-quality shareholders.”
Traders Review
ELEMF stock is trading above the 20-Day and 200-Day Moving averages of $1.23 and $1.14 respectively. However, the stock is trading below the 50-Day moving average of $1.26.
