EMX Royalty Corp. (Toronto Stock Exchange: EMX) announced on Friday that its wholly owned subsidiary Bullion Monarch Mining has settled with Barrick Gold and Barrick's affiliates and subsidiaries over Barrick entity's failure to pay royalties to Bullion for the Carlin Trend Mine in Nevada.
The lawsuit was initiated by Bullion in 2008, before EMX was acquired in 2012. Under the settlement agreement, Barrick will pay $25 million to Bullion, of which $6.175 million will be paid to Bullion's Reno lawyer in Nevada for emergency expenses.
EMX said the settlement did not affect the 1 per cent return on royalties from the total smelter in Nevada Gold's Leeville, Turf and other underground gold operations, which would continue to be paid.
In EMX's diversified portfolio of precious, base and other royalty interests, Leeville royalties, which cover Newmont's Northern Carlin Trend underground operations, are an important asset of the company. EMX leverages royalties and other cash flows from Leeville to help cover operating expenses and fund other opportunities.
Shares in Vancouver-based royalty company EMX rose 4.6% as of 12 p.m. EDT, giving the Vancouver-based royalty company a market capitalization of C $331.9 million (US $260.3 million).
