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Altius maintains an underlying 2% gross uranium sales royalty and a 2% net smelter return royalty on base and precious metals that may be produced from Aurora's Central Mineral Belt ("CMB") projects in Labrador, Canada.
The royalty was created in June 2005 following 2 years of successful
exploration in the CMB when Altius and its partner, Fronteer Development Group,
restructured their exploration alliance as part of a longer-term business
strategy to create a new pure uranium company - Aurora Energy Resources Inc. (TSX:AXU).
The agreement structure and launch of Aurora effectively converted Altius
property ownership into an equity stake in the new uranium company and an
underlying royalty covering Aurora's Labrador properties. By October 2007
Altius had sold its entire equity stake in Aurora for gross proceeds in excess
of $200 million, while still retaining its royalty position over the properties.
The Central Mineral Belt project generation initiative in
early 2003 and the subsequent Aurora co-founding in 2005 is a testament to the
success of Altius' chosen business model.
Aurora has been focused on a comprehensive exploration/development program in the CMB
over the past three years. The ongoing 2008 program has been consistently expanding uranium resources at the Michelin and Jacques Lake deposits as well as
identifying new uranium prospects throughout the CMB district. Current
measured, indicated and inferred (MII) resources reported by Aurora stand at
~130m lbs of uranium.
It should be noted that Aurora has had a turbulent 2008/09 due
to deteriorating uranium market fundamentals and Nanatsiuvut's decision to
implement a 3-year moratorium on uranium development and mining.
For further information regarding results to date and the ongoing exploration and mine development planning please visit www.aurora-energy.ca.
