777 Royalty (MB, Canada)
Flin Flon, Manitoba, Canada
Hudbay Minerals www.hudbayminerals.com
4% Net Smelter Returns (NSR) royalty on the original royalty lands
Tonnage royalty of 27.56 cents per metric tonne on all mine production on the same royalty lands
3% NSR royalty on an Area of Interest subject to a partial buyback right. Hudbay can acquire 1/3 of the 3% NSR royalty for $2 million.
|LTM (as of January 31, 2016) Royalty Revenue||$10.4 million|
|Annual production capacity||1.4 mt|
|Estimated Mine Life||6 years|
Copper, Zinc, Gold and Silver
As the result of being one of the original claim holders in the Flin Flon mining district, Manitoba, Canada, Callinan held royalties on a large area surrounding and including Hudbay's 777 mine to which now Altius owns with the recent acquisition of Callinan.
The 777 mine is located in the productive Flin Flon greenstone belt in the Canadian Shield, where Hudbay has been active for nearly 85 years. The 777 mine is an underground mining operation that commenced commercial production in 2004 and that has an estimated mine life until 2021 based on current reserves. The mine is a low-cost producer of copper, zinc, gold and silver with current throughput of approximately 1.5 million tonnes per year.
These royalties translate into significant cash flow to date and expected future revenues. Since commencement of royalty payments in 2007, Callinan collected more than $100 million in payments and Altius looks forward to the future revenues this royalty will generate.
Roderick Smith, P.Geo., Chief Geologist, is the qualified person as defined by NI 43-101 guidelines responsible for the technical data presented herein.