Star Royalties Invests in Green Opportunities with Elizabeth Metis Settlement
Toronto, ON -- July 26, 2021 -- NewsGenie -- Star Royalties Ltd. has partnered with Elizabeth Metis Settlement (EMS) to acquire a 13.5% gross revenue royalty on EMS’ revenue share from emission reduction benefits (ERBs) generated from the EMS Forest Project in Alberta, Canada, for C$300,000.
The Royalty covers the entire EMS Forest Project and has a term of the earlier of: 1) 10 years commencing on the date EMS receives any gross revenue from the monetization of ERBs, or 2) the date hereof until the first 225,000 ERBs are issued and sold in connection with the EMS Forest Project.
Alex Pernin, CEO of Star Royalties, expressed pride in supporting the EMS Forest Project, noting its potential to sequester significant CO2. He highlighted the transaction as a pure green investment with cash flow visibility and sees potential for similar partnerships with Indigenous communities.
The EMS Forest Project spans 15,457 hectares and aims to generate ERBs, including carbon offset credits, for sale to federally regulated industrial emitters. Bluesource Canada ULC is assisting EMS in developing the project. Revenue is expected to start in 2023.
Carbon offsets are generated from activities that reduce carbon emissions or improve carbon sequestration. Carbon offset credits, or ERBs, represent a measurable net benefit, with one credit equaling one tonne of CO2e emission reduction.
Star Royalties Ltd. is a precious metals royalty and streaming investment company that aims to create wealth through accretive transaction structuring and asset life extension and also invests in green opportunities.