Royalty Holder…….................Lemuria
Revenue………............……..…..….....n.a.
Mine Life...……….............5 years plus
Commodity………………...............Silver
Operator......................Fortuna Silver

#11 Lemuria Royalties

Lemuria is a private Canadian company that setup in the royalty space last year. It has so far raised $6.2m from private investors, paying $1.5m in June for a 2 per cent royalty over Fortuna Silver's Caylloma mine in Peru.

The royalty was previously owned by Hochschild Mining and is not yet cash-flowing. Royalty receipts only start once 21m ounces of silver have been mined, versus around 17m to date. Caylloma meanwhile churns out 1 to 2 million ounces per annum, suggesting the royalty could generate $400,000 to $700,000 each year from 2019.

The figures are modest for the royalty and streaming sector, but Lemuria seems serious in entering the royalty business, successfully raising cash, whilst stressing that it will be “selective” in closing deals. Directors include Abraham Drost, who sold Premier Royalty to Sandstorm in 2013, and Carlos Vicens, a former banker at Scotiabank, which has structured many of the largest streaming deals in the industry.

 

 

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