Ecora Resources to sell 2% Dugbe NSR royalty

Executive Summary

• Ecora Resources PLC agreed to sell its 2 % NSR royalty on the Dugbe gold project in Liberia for up to $20 million.
• The deal includes a $16.5 million upfront cash payment plus contingent consideration of up to $3.5 million tied to construction milestones and production thresholds.
• Proceeds are expected to accelerate Ecora’s deleveraging and provide flexibility for future royalty acquisitions.

Key Details

• Transaction Structure: Sale of a wholly‑owned subsidiary holding the Dugbe gold royalty to a subsidiary of Elemental Altus Royalties Corp.
• Upfront Cash Consideration: $16.5 million payable at closing (expected in the coming days).
• Contingent Consideration: Up to $3.5 million, payable as follows:
• $700,000 upon commencement of project construction.
• $2.8 million upon commencement of commercial production.
• Trigger for Full Contingent Payment: If the project is built to a smaller scale than outlined in the June 13 2022 feasibility study and cumulative gold production reaches 150,000 oz.
• Carrying Value of Royalty (as of Dec 31 2024): $5.9 million.
• Total Potential Consideration: Up to $20 million, representing a material uplift over the carrying amount.
• Strategic Rationale: Unlocks value from a non‑core, development‑stage asset; supports deleveraging; enhances flexibility to acquire cash‑generative royalties in targeted commodities.

Notable Quotes

“The transaction unlocks value from a development-stage asset in a non-core commodity and will enable us to accelerate the group's deleveraging as well as providing further flexibility to acquire cash‑generative royalties within our targeted commodity basket in time.” – Marc Bishop Lafleche, CEO