Ecora (LSE/TSX: ECOR, OTCQX: ECRAF) announced that it has agreed to sell a wholly-owned subsidiary, which holds a 2% Net Smelter Return royalty over the development stage Dugbe Gold Project in Liberia, to a subsidiary of Elemental Altus Royalties Corp. for a total consideration of up to $20.0m.
The consideration is comprised of a $16.5m upfront cash payment and contingent consideration of up to $3.5m payable as follows:
1) $700,000 upon commencement of project construction; and
2) $2,800,000 upon commencement of commercial production.
The $3.5m contingent consideration is payable in full in the event the project is built to a smaller scale than that contemplated in the Dugbe Gold Project Feasibility Study (effective date 13 June 2022) upon the cumulative production of 150koz of gold.
Ecora acquired the Dugbe royalty in 2012, which had a carrying value of $5.9m as at 31 December 2024.
The transaction is expected to close in the coming days.
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