Altius Minerals Corp. report annual net earnings of nearly $21 million

Staff ~ The Telegram
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Altius Minerals Corp. reported net earnings of $20.963 million for the year ended April 30.
That's compared to net earnings of $28.501 million for the previous year.
The current year's earnings include a gain of $28.413 million from the sale of the corporation's IRC shares as a result of the takeover by Royal Gold Inc.
According to a news release, this gain was offset by lower investment income from government-guaranteed marketable securities, as well as lower royalty revenue as a result of the continuing strike at Vale's Canadian operations.
The prior year's earnings included a $38.180 million gain on the settlement of the equity forward agreement on Aurora shares.
During the year, corporation supported the Royal Gold proposal to acquire all of the shares of IRC in exchange for a combination of cash plus Royal Gold shares. As a result of the closing of this transaction, the corporation received proceeds with a market value of $63.132 million including cash of $37.520 million and 529,297 exchangeable shares in RG Exchange Co Inc.
The corporation also structured a significant option agreement pertaining to its Kamistiatusset iron ore project with Alderon Resources Inc. that will focus on the western Labrador iron ore mining district of Canada.
Under the terms of the agreement, Alderon must incur exploration expenditures totaling $5 million over a two-year period and must meet certain financing conditions to earn 100 per cent of the Kamistaitusset iron ore property. In exchange for the transfer, the corporation will retain a three per cent gross sales royalty and will receive approximately 32 million common shares of Alderon, which currently represents an approximate 46 per cent equity interest in Alderon.
The agreement remains in good standing and all of the financing requirements have been met. Alderon recently announced the commencement of a 20,000 metre drill program to further evaluate the resource potential.
The news release also stated the corporation's mineral exploration activity focused on generative exploration work in several regions.
Numerous exploration programs for gold, nickel, copper, uranium and iron ore in Newfoundland and Labrador and reconnaissance exploration in Nunavut and Quebec will be completed during 2010.
The corporation's goal is to develop new exploration projects for subsequent third party funding agreements consistent with the corporation's exploration and royalty creation strategy.

Organizations: Altius Minerals Corp., Royal Gold Inc., Alderon Resources RG Exchange Co

Geographic location: Newfoundland and Labrador, Canada, Nunavut Quebec

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