LONDON: Ecora Resources PLC (LSE/TSX: ECOR, OTCQX: ECRAF) said Tuesday it has agreed to sell a wholly owned subsidiary holding a 2% Net Smelter Return royalty over the Dugbe Gold Project in Liberia to a subsidiary of Elemental Altus Royalties Corp. for up to $20 million.
The consideration includes a $16.5 million upfront cash payment and up to $3.5 million in contingent payments. Ecora will receive $700,000 upon commencement of construction and $2.8 million upon the start of commercial production. If the project is built at a smaller scale than outlined in the June 2022 feasibility study, the full $3.5 million will be paid after cumulative production reaches 150,000 ounces of gold.
Ecora acquired the Dugbe royalty in 2012. As of Dec. 31, 2024, the asset had a carrying value of $5.9 million. The transaction is expected to close in the coming days.
“This transaction unlocks value from a development-stage asset in a non-core commodity,” said CEO Marc Bishop Lafleche. “It enables us to accelerate deleveraging and pursue cash-generative royalties aligned with our targeted commodity basket.”
Ecora said the deal underscores the broader value of its royalty portfolio beyond its core producing assets.