Altius says it will make $27-M from IRC sale

Rob Antle
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Mining/Royalties

Altius Minerals Corp. says it will pocket $27 million in profits - a return of 78 per cent - from an investment the St. John's-based company made last year.

In July, Altius acquired seven million shares of International Royalty Corp. (IRC).

That purchase, combined with a couple of million shares Altius previously bought, meant the Newfoundland company held roughly 9.4 per cent of IRC.

Altius Minerals Corp. says it will pocket $27 million in profits - a return of 78 per cent - from an investment the St. John's-based company made last year.

In July, Altius acquired seven million shares of International Royalty Corp. (IRC).

That purchase, combined with a couple of million shares Altius previously bought, meant the Newfoundland company held roughly 9.4 per cent of IRC.

"We bought a big piece of IRC because our appraisal of the assets of the company versus the value - the market capitalization, of the company at the time - (showed) there seemed to be a good basis there for an investment," explained Chad Wells, vice-president of corporate development for Altius.

IRC is a global mineral royalty company. Its holdings include a 2.7 per cent net smelter royalty on the Voisey's Bay mine.

Altius, on its own, has a 0.3 per cent royalty on Voisey's Bay as well. This week, Royal Gold Inc. took over IRC, buying all of its shares.

That deal will see Altius get nearly $62 million for its shares in IRC - roughly 60 per cent of it in cash, the rest in stock.

According to Wells, the original investment cost $35 million. That will leave Altius with a profit of roughly $27 million.

Wells said Altius will be sitting on $195 million in cash when the deal closes. The company has no debt.

Altius stock was trading at $8.31 on the TSX Venture exchange late this week. Its 52-week high is $9.10 and its low is $5.56.

The company has royalty interests in a number of mining projects and is involved in a series of mineral exploration plays, mainly in Newfoundland and Labrador.

Altius was also the driving force behind a since-shelved proposal to build a second oil refinery in the province.

rantle@thetelegram.com

Organizations: International Royalty, Altius Minerals Corp., Royal Gold Inc.

Geographic location: Newfoundland and Labrador, St. John's

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