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LONDON - Ecora Resources PLC (LSE/TSX:ECOR, OTCQX: ECRAF) has agreed to sell its 2% Net Smelter Return royalty over the Dugbe Gold Project in Liberia for up to $20 million, the company announced Tuesday.
The buyer, a subsidiary of Elemental Altus Royalties Corp., will pay $16.5 million in upfront cash with potential additional payments of up to $3.5 million tied to project milestones. These contingent payments include $700,000 upon commencement of project construction and $2.8 million when commercial production begins.
The transaction, expected to close within days, represents a significant premium over the royalty’s $5.9 million carrying value as recorded on December 31, 2024. Ecora originally acquired the Dugbe royalty in 2012.
Marc Bishop Lafleche, Chief Executive Officer of Ecora, said the sale "unlocks value from a development stage asset in a non-core commodity" and will allow the company to accelerate debt reduction while providing "flexibility to acquire cash generative royalties within our targeted commodity basket."
The deal aligns with Ecora’s strategic shift away from coal toward minerals supporting electrification and sustainable energy. According to company statements in the press release, Ecora aims to have over 90% exposure to commodities supporting a sustainable future by 2026, with minimal coal assets remaining in its portfolio.
The $3.5 million contingent consideration will be payable in full if the project is built to a smaller scale than outlined in the June 2022 Dugbe Gold Project Feasibility Study, upon cumulative production of 150,000 ounces of gold.
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