The geology of northern Haiti is prospective for epithermal and porphyry type mineral deposits, and hosts numerous gold, copper, copper-gold and copper-gold-silver occurrences and prospects. EMX initiated an exploration program along a 130 kilometer trend of northern Haiti’s Massif du Nord mineral belt during 2006. Based on encouraging results, EMX and Newmont Ventures Limited (“Newmont”), a wholly owned subsidiary of Newmont Mining Corporation, entered into a Regional Strategic Alliance in 2008. Subsequently, EMX and Newmont signed Joint Venture agreements covering six “designated exploration areas” that included the La Miel, La Mine, Grand Bois “Surrounding Properties”, Northwest Haiti, Northeast Haiti and North Central Haiti Designated Projects.
Newmont funded and managed the Joint Venture, and developed several exploration targets ready for drill testing. The projects have been on care and maintenance status since 2013, when the Haitian government suspended its Mining Convention process while it began working on a new mining law to be more consistent with international standards.
On November 2, 2015 EMX announced the signing of an agreement to sell its Joint Venture interests in Haiti to Newmont on the following terms:
- Newmont paid US $4 million (CAD $5.3 million) in cash to EMX at closing;
- The Joint Ventures were terminated;
- EMX retains a 0.5% net smelter return (“NSR”) royalty on the 49 Research Permit applications covering the designated exploration areas;
- EMX retains the right to acquire any properties proposed to be abandoned or surrendered by Newmont.
EMX executed the royalty generator business model in Haiti by recognizing the country’s excellent, but under-explored mineral potential and taking advantage of “early mover” opportunities in 2006. The extensive exploration portfolio originally assembled by EMX has had considerable value generated as a result of Newmont’s systematic and comprehensive exploration assessments. EMX is now positioned to participate in future exploration and development successes through its 0.5% NSR royalty.
In addition, the Grand Bois gold-copper project, which was outside of the Joint Venture with Newmont, has also been converted to a royalty property in February 2016. The property is being advanced by Sono Global Holdings, Inc., a privately held Nevada corporation. EMX has retained a 0.5% net smelter return (“NSR”) royalty interest in the Grand Bois project and the right to acquire any properties proposed to be abandoned or surrendered from the Grand Bois project in the future. The property covers a historic oxide gold resource, and has copper exploration potential beneath the gold zone.