Urasar

Location
Armenia

Operator
Hayasa Metals Inc.

Commodity
Gold-Silver

Royalty
0.625% NSR

EMX Royalty purchased a 0.625% NSR royalty interest covering all minerals produced from the Urasar gold-copper project in northern Armenia, which is wholly owned and being advanced by Hayasa Metals Inc. (“Hayasa”, TSX-V:HAY), formerly Fremont Gold Ltd. See Company news release dated January, 7, 2025 for more details.

EMX and Franco will pay Hayasa a combined US$1 million (with EMX contributing US$450,000 and Franco contributing US$550,000 in accordance with the terms of the Joint Acquisition Agreement) in exchange for:

  • A 1.25% NSR royalty interest to be shared evenly between EMX and Franco (i.e. each company will receive a 0.625% NSR royalty interest) that covers the Urasar project licenses and a surrounding area of interest; and
  • 500,000 share purchase warrants, which can be exercised on a one-for-one basis for common shares of Hayasa within 18 months at a strike price of C$0.22 per share (EMX and Franco will each receive 250,000 of the share purchase warrants).

As part of the transaction, EMX and Franco will have a right of first refusal in respect of any royalty, stream or similar interest on Urasar.

The Urasar project is positioned along a regional structural zone that juxtaposes an older package of ophiolitic rocks with younger volcanic and volcaniclastic rocks. Gold and copper mineralization are localized along the contact zones throughout the Urasar exploration license and elsewhere in the region. Urasar saw historic copper production by the French during World War I and was later explored by the Soviets in the 1920’s, 1930’s and 1950’s. Several Soviet era resources were defined (in accordance with the Soviet reporting systems at the time), but virtually no work has been completed since. The styles of mineralization at Urasar bear resemblance to the styles of mineralization in the Sokt gold deposit, the largest developed gold deposit in Armenia. Further information on the project is summarized on Hayasa’s website.

The Urasar gold-copper project was acquired by Hayasa in 2023 by direct acquisition of an exploration license from the Armenian government following an assessment of the Tethyan Metallogenic Belt by Hayasa that was led by Dennis Moore. Mr. Moore is a well-known and accomplished explorer who is credited with the discoveries of the Tocantinzinho and Cuiu Cuiu gold deposits in Brazil.

Armenia has seen recent exploration and development efforts by other western companies, including Orion Mine Finance and Osisko Gold Royalties, who are working to develop the Amulsar gold project in southern Armenia. In addition to its modern mining code and favorable fiscal regime, Armenia currently has over ten active metals mines, and mining is a significant contributor to its GDP.

EMX believes that Urasar has potential to become a significant discovery based upon the historical work done on the property, new surface geochemical and geophysical data collected by Hayasa, and overall geological characteristics. The royalty acquisition at Urasar represents the first co-investment between EMX and Franco as part of their Joint Acquisition Agreement.

Comments on Historical Mineral Resources. EMX does not consider the historical mineral resources defined at Urasar during the Soviet era to be compliant with NI 43-101 standards, nor is EMX treating the historic resources as current resources on the project. They are discussed here strictly for their historical context and should not be relied upon until they can be confirmed.

Comments on Nearby Mines and Deposits. The mines and deposits discussed in this news release provide context for EMX’s projects, which occur in similar geologic settings, but this is not necessarily indicative that the Company’s projects host similar styles, tonnages or grades of mineralization. 

Maps

Geological map of Urasar with mineral deposits and prospects. From hayasametals.com Click to Enlarge

Photos