The company is acquiring an effective 0.418% net smelter return royalty (NSR) attached to the mine in a deal worth US$34.1mln net, alongside partner EMX Royalty Corporation, via a jointly owned special purpose vehicle incorporated in Chile. Altogether, the vehicle bought a 0.836% royalty for US$68.2mln.
Altus is expecting to generate around US$3.2mln of cash flow from its NSR per year and said the mine has an estimated remaining mine life of 17 years (after coming online in 2015).
"We are delighted to announce the final closing of the acquisition of a significant cash paying royalty on a long-life copper mine in a tier-1 mining jurisdiction,” said chief executive Steven Poulton.
"The acquisition of the NSR interest has been part-financed by a US$29 million acquisition bridge loan facility provided by La Mancha, our largest shareholder, which has recently established a US$1.4bn mining investment fund.
“The provision of the facility underscores La Mancha's commitment to the long-term growth of Altus and the quality of this acquisition.”
Poulton added: "Following this acquisition, Altus will receive significant quarterly royalty income and will have long-term exposure to copper.
“We expect the demand for copper to remain strong in the years ahead, as the global economy seeks to decarbonise in parallel with continued infrastructure development, urbanisation and wealth creation in emerging markets.”
Altus highlighted that further royalty transactions are under review, with a focus on gold and copper operations.