Elemental Altus Royalties Corp., a precious metals royalty company headquartered in Vancouver, Canada, reports the approval of development work at the Diba gold project in western Mali by Allied Gold Corp. Diba, adjacent to Allied Gold's flagship Sadiola gold mine, is expected to begin production in the first half of 2024. Elemental Altus holds a 3 percent Net Smelter Return royalty and anticipates substantial revenue growth with over 6,000 attributable Gold Equivalent Ounces projected for 2024 and 2025. Additionally, the company will receive up to $6 million in milestone payments alongside Diba royalty revenue.
Allied Gold has also completed a $267 million financing, utilizing the proceeds to support its growth plans, including the Phase 1 Expansion of the Sadiola mine in Mali and the advancement of the Diba project in western Mali. Approximately 200,000 ounces of gold within the oxide and transitional categories are earmarked for rapid extraction by Allied Gold, aiming for conversion to Mineral Reserves to be mined from 2024 to 2025. Elemental Altus has executed a sale and purchase agreement with Allied Gold for the sale of its subsidiary, which indirectly owns mining licences for Diba and Lakanfla, bringing the potential for further resource expansion and exploration in the same geological district as Sadiola.