EMX Purchases Royalty Interest Over Hayasa's Urasar Gold-Copper Project in Armenia

EMX Royalty Corporation (NYSE American: EMX, TSXV: EMX) has announced an acquisition in Armenia’s burgeoning mining sector. Through a joint agreement with Franco-Nevada Corporation (Franco), EMX has purchased a 0.625% net smelter return (NSR) royalty interest in the Urasar gold-copper project, owned by Hayasa Metals Inc. (TSXV: HAY). Franco-Nevada has also acquired a 0.625% NSR royalty, bringing the combined royalty interest to 1.25%.

The acquisition required a total investment of US$1 million, with EMX contributing US$450,000 and Franco-Nevada contributing US$550,000. In addition to the royalty interest, the agreement includes 500,000 share purchase warrants, split equally between EMX and Franco. Each warrant allows for the purchase of Hayasa shares at a strike price of C$0.22 within 18 months. Both companies also secured a right of first refusal on any future royalty or stream interests related to the Urasar project.

The Urasar gold-copper project is situated in northern Armenia, within a geologically significant area of the Tethyan Metallogenic Belt. This region is known for its rich deposits of gold, copper, and other minerals. The project’s historical significance includes French copper production during World War I and Soviet-era exploration efforts in the mid-20th century. These earlier activities identified potential mineral resources, although they are not compliant with modern reporting standards like NI 43-101.

Hayasa Metals acquired the Urasar project in 2023 through an exploration license from the Armenian government. Led by renowned geologist Dennis Moore, Hayasa conducted detailed assessments of the area, identifying mineralization along key structural zones. The project’s geological characteristics resemble those of Armenia’s largest gold deposit, Sokt, enhancing its potential for significant discoveries.

The acquisition represents a strategic move by EMX and Franco-Nevada to expand their exposure in Armenia’s mining sector. By partnering, the companies share the risks and benefits of investing in an emerging market. The inclusion of share purchase warrants adds an equity upside, providing additional financial flexibility.

Armenia’s mining-friendly regulatory framework and modern mining code have attracted international interest. The country’s mining sector contributes significantly to its GDP, with over ten active metals mines. Companies like Orion Mine Finance and Osisko Gold Royalties have also made substantial investments, signaling growing confidence in Armenia as a mining destination.

While Armenia offers favorable conditions for mining, geopolitical complexities pose potential risks. The region’s history of conflict and reliance on Russian influence could affect investment stability. However, Armenia’s recent efforts to attract Western investment and diversify its economic partnerships indicate a positive trajectory for its mining industry.