Star Royalties Set to Benefit as Copperstone Mine Advances Towards Production
TORONTO, ON -- February 7, 2025 -- NewsGenie -- Star Royalties Ltd. (TSXV: STRR, OTCQX: STRFF) is poised to capitalize on Minera Alamos Inc.\u2019s (TSXV: MAI, OTCQX: MAIFF) acquisition of Sabre Gold Mines Corp. (TSX: SGLD, OTCQB: SGLDF). This acquisition paves the way for the Copperstone Gold Mine to commence production in the first half of 2026.
Star Royalties holds a 4% gold streaming agreement on Copperstone for the mine's life. The agreement stipulates that Star Royalties will pay Minera Alamos 25% of the spot gold price for each ounce delivered.
Minera Alamos intends to fast-track Copperstone's development, targeting production by H1 2026. The company is expanding its team and has set milestones for 2025, including a Preliminary Economic Assessment (PEA) update and process plant equipment installation.
Minera Alamos anticipates using its existing process plant equipment and infrastructure to control pre-production capital costs, estimated at $36 million in the June 2023 PEA. A revised PEA will reflect current gold prices, projecting approximately US$19.2 million in pre-tax cash flow for Star Royalties' stream over the mine's life, assuming a gold price of US$2,800/oz.
Star Royalties' equity in Sabre Gold has been converted into Minera Alamos shares, diversifying its portfolio. Additionally, C$2.0 million in contingent payments from Sabre Gold have been converted into Minera Alamos equity.
Alex Pernin, CEO of Star Royalties, expressed confidence in Minera Alamos' ability to bring Copperstone to production, foreseeing significant value generation. Pernin also noted the potential for further re-rating of Minera Alamos' shares as the company advances its projects.
Minera Alamos plans to secure remaining financing, rehabilitate the process plant, and submit permitting documents in the first half of 2025. The second half will focus on completing plant installation and securing operational permits.
Source: Minera Alamos corporate presentation, dated February 2025.
About Star Royalties Ltd.
Star Royalties Ltd. is a carbon credit and precious metals royalty and streaming company focused on creating wealth through accretive transactions.