(TheNewswire)
All amounts are in U.S. dollars unless otherwiseindicated.
N ovember 24, 2021 – TheNewswire - T oronto , ON - Star RoyaltiesLtd. (the “ Company ” or“ Star Royalties ”) (TSXV:STRR ) ( OTC:STRFF) is pleased to report its financial results for thethird quarter ended September 30, 2021.
Summary of Q3 2021 Results
Quarter ended September 30, 2021 | Quarter ended September 30, 2020 | |
Revenue | $ 225,458 | $ - |
Net loss | (397,609) | (135,365) |
Basic and diluted loss per share | (0.01) | (0.01) |
Cash flow from operating activities | (92,758) | (95,504) |
Cash flow from investing activities | (10,339,476) | (53,855) |
Cash flow from financing activities | - | 11,253,213 |
For complete details, please refer to the CondensedInterim Financial Statements and associated Management Discussion andAnalysis for the three and nine months ended September 30, 2021,available on SEDAR at www.sedar.com or on the Company’s website at www.starroyalties.com .
Alex Pernin, Chief Executive Officer of Star Royalties,commented: “We are pleased to report that our Keysbrook royaltycontinues to exceed our revenue expectations. In the third quarter of2021, we announced a transformative royalty acquisition on the ElkGold mine. This investment represented imminent cash flow in atier-one jurisdiction from a high-margin gold mine. The Elk Goldroyalty acquisition allowed our portfolio to become a free cashflowing one, and in turn, allowed us to achieve this primary goal forour team within our first year as a public company. We also created acarbon offset credit royalty with the Elizabeth Metis Settlement. Thishighlighted our ability to finance pure-green opportunities and thepotential for us to transact with other Indigenous communities inunlocking their many carbon sequestration opportunities. Mostrecently, we were thrilled to launch our wholly-owned, pure-greensubsidiary, Green Star Royalties. This will allow us to accelerate ourgreen royalty business and to capitalize on our strong relationships,first-mover advantage, and the several opportunities currently in ourgreen pipeline.”
Significant Portfolio Updates
Copperstone Gold Project
On August 25, 2021, Sabre Gold Mines Corp.(“ Sabre Gold ”) (TSX: SGLD, OTCQB:SGLDF) (formerly Arizona Gold Corp.) announcedthat shareholders of both Arizona Gold Corp. and Golden PredatorMining Corp. (“ GoldenPredator ”) (TSXV: GPY, OTCQX: NTGSF)overwhelmingly approved all matters voted on at special meetings oftheir respective shareholders, including shareholders of GoldenPredator approving the proposed merger of Golden Predator and ArizonaGold to form Sabre Gold. The British Columbia Supreme Court issued thefinal order approving the merger on August 31, 2021. On September 2,2021, the merger was completed, and Sabre Gold’s common sharescommenced trading on the Toronto Stock Exchange with the new tradingsymbol “SGLD” at the opening of trading on September 8,2021.
On September 21, 2021, Sabre Gold announced updatedmineral resources at Copperstone. These highlights included:
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23% increase in gold ounces in all categories.
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53% increase in Measured Resources to 196,000 goldounces in 806,000 tonnes at 7.6 g/t.
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45% increase in Inferred Resources to 212,000 goldounces in 1,124,000 tonnes at 5.9 g/t.
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Underground mapping and sampling confirmed that themineralized domains occur where previously modelled while drillingcontinued to demonstrate continuity in mineralization withinmineralized domains and delimited some domain edges where step-outholes were drilled.
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Capping of very high-grade intercepts were distinct foreach mineralized domain and based on conservative detailed statisticalanalysis which will provide potential further resourceupside.
An updated National Instrument 43-101 – Standards ofDisclosure for Mineral Projects Technical Report titled “UpdatedMineral Resource Estimate for the Copperstone Project, La Paz County,Arizona, USA” was filed in October 2021, supporting the above notedresults.
On October 13, 2021, Sabre Gold provided an update onthe pre-construction and engineering activities at Copperstone whereproduction is expected to commence in mid-2022:
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Mine Engineering: Sabre Gold engaged Mine Development Associates of Reno,Nevada to prepare final mine designs and production scheduling. Thepurpose of this work was to optimize ore sequencing and haulageprofiles associated with the new resource model. A full estimation ofmining costs and initial capital costs will be completed as well.Underground electrical power needs and infrastructure requirementswere completed and incorporated into the overall projectschedule.
Mine Operations: Sabre Gold completed most of the necessary rehabilitation inthe first quarter of 2021. Additional pre-production rehabilitationwas scheduled for the fourth quarter of 2021 in preparation for thefinal definition drilling in October and subsequent full mineproduction in 2022. Several mining contractorshad been engaged in a formal tender process in preparation for minedevelopment quotes. A comprehensive list of pre-qualified contractorshad been developed and RFQ’s were scheduled to be extended by lateOctober, with final selection in November.
Mineral Processing: The original flotation circuit has been dismantled andremoved to make room for the construction of the new whole ore leach( WOL ”)facility. A complete evaluation of the existing infrastructure wasperformed and included in the project scope.
Detailed engineering of the modifications to theexisting mill and expansion of the new WOL facility had been broughtto 60% completion by Hanlon Engineering and included initial plantlayout, tank and thickener sizing, and a revised capital estimate.Final detailed engineering and plant layout was pending finalmetallurgical testing derived from the final mine plan.
Long-lead items such as the ball mill feed chute, ballmill liners and a replacement cone crusher had been ordered by SabreGold. The Merrill Crowe unit and other WOL plant equipment wereordered in October and will be available for construction later thisyear and early next year.
Elk Gold Project
On September 28, 2021, the Company executed adefinitive royalty purchase agreement with Almadex Minerals Ltd.(“ Almadex ”) (TSXV: DEX) to acquire an existing 2% net smelter returnroyalty on the Elk Gold Mine (“ Elk Gold ”) located in British Columbia,Canada and owned and operated by Gold Mountain Mining Corp.(“ Gold Mountain ”) (TSXV: GMTN, OTCQB: GMTNF, FRA: 5XFA) for totalconsideration of $10 million in cash, 1,659,304 common shares valuedat $574,249 (C$730,094) and 829,652 common share purchase warrantsvalued at $57,659 (C$73,307). Each common share purchase warrant willbe exercisable at C$0.70 until September 29, 2023.
On November 9, 2021, Gold Mountain announced that ithad mined the first significant mineralized material at Elk Gold. GoldMountain exposed its 1100 vein system located on the footwall ofhistoric pit 2, and will now crush, weigh and assay the material priorto sending it to its ore purchase partner, New Gold Inc.(“ New Gold ”) (TSX, NYSE American: NGD), to be processed at NewGold’s New Afton processing plant.
Elizabeth Metis Settlement Forest Carbon OffsetProject
On July 23, 2021, the Company executed a definitiveroyalty purchase agreement and gross revenue royalty agreement withElizabeth Metis Settlement (“ EMS ”) to acquire a 13.5% gross revenueroyalty on EMS’ revenue share from the creation and sale of emissionreduction benefits (including carbon offset credits and emissionreduction credits) from forested lands located in EMS in Alberta,Canada for a total consideration of $238,569 (C$300,000) incash.
CONTACT INFORMATION
For more information, please visit our website at starroyalties.com or contact:
Alex Pernin, P.Geo. Peter Bures
Chief Executive Officer and Director ChiefBusiness Development Officer
apernin@starroyalties.com pbures@starroyalties.com
+1 647 801 3549 +1 437 997 8088
ABOUT STAR ROYALTIES LTD.
Star Royalties Ltd. is a precious metals and greenroyalty and streaming investment company. The Company created theworld’s first carbon negative gold royalty platform and offersinvestors gold exposure with an increasingly negative carbonfootprint. The Company’s objective is to provide wealth creationthrough accretive transaction structuring and asset life extensionwith superior alignment to both counterparties andshareholders.
CAUTIONARY NOTE REGARDING FORWARD-LOOKINGINFORMATION
Certain statements in this news release may constitute"forward-looking statements", including those regardingfuture market conditions for metals and minerals. Forward-lookingstatements are statements that address or discuss activities, eventsor developments that the Company expects or anticipates may occur inthe future which include but are not limited to statements relating tothe further expansion of gold mineralized zones at Arizona Gold, theexecution on opportunities within the Star Royalties pipeline,potential for re-rating catalysts, deployment of IPO funds, and thepursuit of a pipeline of additional green investments and preciousmetals investments. 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 identifysuch forward-looking statements. Forward-looking statements are madebased upon certain assumptions and other important factors that, ifuntrue, could cause the actual results, performances or achievementsof 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 futureperformance or results and will not necessarily be an accurateindication of whether or not such results will be achieved. A numberof factors could cause actual results, performances or achievements todiffer materially from such forward-looking statements, including,without limitation, changes in business plans and strategies, marketconditions, share price, best use of available cash, the ability ofthe Company to identify and execute future acquisitions on acceptableterms or at all, risks inherent to royalty and streaming companies,title and permitting matters, metal and mineralcommodity price volatility, discrepancies between actual and estimatedproduction, mineral reserves and resources and metallurgicalrecoveries, mining operation and development risks relating to theparties which produce the metals and minerals Star Royalties willpurchase or from which it will receive royalty payments, regulatoryrestrictions, activities by governmental authorities (includingchanges in taxation), currency fluctuations, the global social andeconomic climate, natural disasters and global pandemics, inparticular COVID-19, dilution, and competition. These risks, as wellas others, could cause actual results and events to varysignificantly. Accordingly, readers should exercise caution in relyingupon forward-looking statements and the Company undertakes noobligation to publicly revise them to reflect subsequent events orcircumstances, except as required by law.
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