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EMX Royalty Corp
Symbol EMX
Shares Issued 80,840,055
Close 2019-03-01 C$ 1.62
Market Cap C$ 130,960,889
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EMX Royalty options Rostvangen, Vakkerlien to Playfair

2019-03-01 17:42 ET - News Release

Mr. David Cole reports

EMX ROYALTY OPTIONS THE ROSTVANGEN AND VAKKERLIEN PROPERTIES IN NORWAY TO PLAYFAIR MINING

EMX Royalty Corp. has executed an exploration and option agreement for the Rostvangen volcanogenic massive sulphide (VMS) property and the Vakkerlien nickel-copper-cobalt property in Norway with Playfair Mining Ltd. The agreement provides EMX with immediate share equity in Playfair and, upon Playfair's completion of the option terms and other consideration, a 9.9-per-cent interest in Playfair, a 3-per-cent net smelter return (NSR) royalty on the project and advance royalty payments.

The Rostvangen property hosts a greater-than-30-kilometre-long trend of geophysical anomalies and VMS-type mineralization, as well as the Kvikne copper deposits, that occur in one of Norway's oldest mining districts. On the directly adjoining Vakkerlien property, nickel mineralization was discovered in the 1870s, and was the subject of drill campaigns from the 1970s through the early 2000s that led to the discovery of nickel-copper-cobalt mineralization.

Commercial term overview: Pursuant to the agreement, Playfair can earn a 100-per-cent interest in the project by the issuance of shares to EMX and performance of work during the one-year option period, as described below:

  • On signing the agreement, subject to TSX Venture Exchange acceptance, Playfair will issue to EMX three million common shares of Playfair stock.
  • As a condition to the exercise of the option, Playfair must complete work commitments of at least $250,000 on the project, and must raise such capital by May 15, 2019.

Upon exercise of the option, Playfair will issue to EMX an additional three million shares of Playfair stock, and EMX will receive a 3-per-cent NSR royalty on the properties comprising the project. Within six years of the execution of the agreement, Playfair may purchase 1 per cent of the NSR royalty in 0.5-per-cent increments for a total of $3-million, leaving EMX with a 2.0-per-cent NSR royalty. EMX will also receive annual advance royalty (AAR) payments of $30,000 commencing on the second anniversary of the option exercise, with the AAR payments increasing by $5,000 per year until reaching $80,000 per year. AARs may be paid in cash or Playfair shares, subject to certain conditions.

After the exercise of the option, further conditions of the agreement include:

  • Playfair will use commercially reasonable efforts to raise an additional $2.75-million for advancement of the project and other activities, and will drill at least 2,000 metres on the project before the third anniversary of the agreement effective date.
  • Within two years of the execution date, Playfair will issue to EMX that number of common shares of Playfair that will increase EMX's equity ownership in Playfair to 9.9 per cent. Thereafter, Playfair will have the continuing obligation to issue additional shares of Playfair to EMX to maintain its 9.9-per-cent interest in Playfair, at no additional cost to EMX, until Playfair has raised a cumulative $3-million in equity. Thereafter, EMX will have the right to participate pro rata in future financings at its own cost to maintain its 9.9-per-cent interest in Playfair.
  • Playfair will issue the equivalent of $250,000 in common shares of Playfair to EMX upon the earlier of:
    • The filing of a preliminary economic assessment technical report;
    • The filing of an initial resource estimate technical report;
    • The fifth anniversary of the option exercise date.
  • The issuance of additional shares of Playfair to EMX will be limited to a maximum 9.9-per-cent equity ownership in Playfair by EMX.

The issuance of Playfair shares to EMX as set forth in the agreement is subject to receipt of TSX Venture Exchange approval.

Overview of project: The Rostvangen property is located approximately 300 kilometres north of Oslo, and hosts the Kvikne copper works, one of Norway's oldest base metal mining districts. Copper mineralization was discovered at Kvikne in 1629, followed by 150 years of mineral production. The mineralization at Kvikne is VMS type, with enrichments of copper and gold. The Kvikne deposits are positioned along a greater-than-30-kilometre-long trend of geophysical anomalies and VMS-type mineral occurrences that form multiple parallel belts across the property. These belts have seen little modern exploration work, and only a few historical drill holes, despite the widespread VMS occurrences and historical mining activities.

The Vakkerlien nickel-copper-cobalt property directly adjoins the Rostvangen exploration licences. Nickel was discovered on the property in the 1870s, when small-scale mining was conducted in the district. Further exploration by Falconbridge Ltd. and Blackstone Ventures Inc. from 1975 through the early 2000s led to the drilling and discovery of nickel-copper-cobalt mineralization to the southeast of the historical workings. The mineralization is associated with, and hosted by, a mid-Proterozoic gabbroic intrusive complex, and is interpreted to be a magmatic sulphide deposit type. Gold and platinum group element (PGE) content remains poorly understood and in need of further assessment.

EMX and Playfair are planning to commence exploration programs in the coming spring and summer months, which will include property-scale sampling, reconnaissance mapping and geophysical surveys. The intent of the programs is to rapidly identify additional exploration targets for drill testing.

Dr. Eric P. Jensen, CPG, a qualified person as defined by National Instrument 43-101, an employee of the company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.

About EMX Royalty Corp.

EMX leverages asset ownership and exploration insight into partnerships that advance its mineral properties, with EMX receiving preproduction payments and retaining royalty interests. EMX complements its royalty generation initiatives with royalty acquisitions and strategic investments.

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