Portfolio

Royalty Investments

Strata holds the following three Royalties (under four separate Royalty Agreements):

1)

A US$2m capped 2% net smelter royalty over Sandfire Resources Motheo T3 project in the Kalahari Copperbelt (within PL190/2008 which is held by Sandfire Resources subsidiary Tshukudu Metals Botswana).

2)

(b) An uncapped 2% net smelter royalty over any future production over Sandfire Resources 100%-held subsidiary Tshukudu Exploration Limited’s circa 8,000km2 licence holding in the Kalahari Copperbelt (including the area covered by PL190/2008 that is outside of the T3 project, in which Tshukudu Exploration Limited holds a beneficial, but not legal, interest in).

Map of licence area covered by Royalty highlighting A4

A feasibility study for T3 and A4 projects can be found below:

Feasibility Study

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3)

(c) An uncapped conditional 2% net smelter royalty over Cobre Limited’s wholly-owned Kitlanya West, East Projects and the southern half of the Okavango Copper Project located in the Kalahari Copper Belt, Botswana. The licences cover an extensive land package of highly-prospective copper and silver exploration tenements over 5,384km2. These are structured as two separate royalty agreements based on how the licences are held under Kalahari Metals Limited' (100%-owned by Cobre Limited) corporate structure, with the ultimate guarantor being Kalahari Metals.


Areas covered by the royalty

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Background on Net Smelter Royalties

Net Smelter Return means the gross revenue from the sale of mineral products, less allowable deductions. Allowable deductions can include, amongst other items, the reasonable costs of smelting and refining, transportation and security costs, handling costs and expenses, actual sales costs, and any taxes, royalties, duties, levies and charges lawfully imposed by an authority.

They do not include exploration, development, construction, mining, crushing, milling, concentrating, administrative, marketing or corporate costs of the payer of the royalty.

 

Equity Investments

Royalty Investments