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Rationale for the Creation of Green Star Royalties
Since its inception,
To address the positive response to the Company’s novel green royalty model, the numerous origination opportunities, and the superior potential returns,
A more rapid build-out of the green investment strategy will allow
While funding for Green Star Royalties has initially come from
Please refer to the
Green Star Royalties Highlights
-Carbon Negative Gold:Green
Star Royalties is expected to generate approximately 5,500 carbon offset credits per annum starting in 2023. By progressively expanding its net negative CO2balance with further green investments,Star Royalties will offer investors gold exposure with an increasingly negative carbon footprint.-Exposure to carbon credit pricing:Green Star Royalties’ strategy is to provide shareholders with exposure to rising carbon credit pricing and to generate superior returns through the origination of green royalties and streams.
-Originating carbon offsets:The Company’s focus will be on funding new carbon credit projects in biosequestration (improved forest management and regenerative agriculture), renewable energies (solar, wind, geothermal, biomass), biofuels, as well as other cleantech investments.
-Re-rating potential:The combination of rapid growth in global ESG fund assets (Bloomberg forecasts
~US$53 trillion in assets under management by 2025) and limited ESG investment opportunities to allocate these funds to has the potential to create strong valuation premiums for ESG-focused companies, such asStar Royalties and Green Star Royalties.-Essential relationships:Green
Star Royalties inherits a working partnership with North America’s leading carbon offset project developer and existing relationships with numerous Canadian Indigenous communities and First Nations.-First-mover and strong pipeline:
Star Royalties pioneered the first forest carbon offset credit royalty investment in 2020 and is pursuing a pipeline of additional cash flowing and near-cash flowing green opportunities in both the compliance and voluntary carbon markets with a priority on North American investments.-Respected team:
Star Royalties will leverage the expertise of its existing management to incubate Green Star Royalties with additional guidance from a planned diverse panel of green experts on its Advisory Committee.-Superior alignment:Green
Star Royalties will be managed with the same top-quartile corporate governance principles under a diverse and majority-independent board, as withStar Royalties .-Funding:Initial funding for Green Star Royalties will be sourced from
Star Royalties .Star Royalties also intends to vend its two existing carbon offset credit royalties, the Lac Seul First Nation Forest Royalty and the Elizabeth Metis SettlementForest Royalty , to Green Star Royalties.
“We are fundamentally passionate about financing a greener future with a conservative royalty and streaming investment model. Green
“To our knowledge, we were the first company to originate a carbon offset credit royalty. We are now in the process of pioneering innovative royalty structures based on our decades of experience within the mining royalty sector to fund new carbon offset projects into existence. The potential returns we are currently seeing in the green sector are superior to what is commonplace in the precious metals sector. One of our objectives since the formation of
“Once Green Star Royalties achieves critical mass, we would look to crystallize value for our shareholders through a go-public event to create a publicly traded, ESG-dedicated, pure-green royalty and streaming investment company. Overall, we see tremendous wealth creation potential for current shareholders and future investors alike.”
Carbon Offset Credits
The Paris Agreement was adopted by 196 nations and entered into force in 2016 with the purpose of reducing global greenhouse gas (“GHG”) emissions. Specifically, the Paris Agreement reaffirms the goal to limit global temperature increase to below 2°C above pre-industrial levels, with a secondary aggressive target of limiting that increase to 1.5°C. In order to achieve these levels, many governments have meaningfully increased their commitment in recent years to reducing GHG emissions, with over 100 countries and thousands of corporations having since committed to significantly reducing GHG emissions by 2030 and being carbon-neutral by 2050. For instance, the
Carbon offsets are generated from any activity that either prevents or reduces carbon emissions (such as renewable energies or methane capture technology), or improves carbon sequestration (such as reforestation and conservation of forested lands or direct carbon capture technology). Carbon offset credits are effectively a measurable net benefit from an activity versus the status quo. Their units are measured in tonnes of CO2e, meaning one carbon offset credit is equal to one tonne of CO2eemission reduction.
Existing Asset Transfers
-In
May 2020 , the Company executed a definitive gross revenue (“GR”) royalty and right of first refusal agreement withAurCrest Gold Inc. (“AurCrest”). The Company acquired both a 16% GR royalty on AurCrest’s revenue share from the creation and sale of carbon offset credits from theLac Seul Forest Pilot Project and a right of first refusal on any forest carbon sequestration within the overall Lac Seul Forest Management Unit located inLac Seul First Nation inOntario, Canada . The Company expects the GR royalty to commence revenue in 2023 and to generate approximately 2,500 attributable carbon offset credits per annum under a compliance regime.-In
July 2021 , the Company executed a definitive royalty purchase agreement and gross revenue royalty agreement with Elizabeth Metis Settlement (“EMS”). The Company acquired a 13.5% GR royalty on EMS’ revenue share from the creation and sale of carbon offset credits from forested lands located in Elizabeth Metis Settlement inAlberta, Canada . The Company expects the GR royalty to commence revenue in 2023 and to generate approximately 3,000 attributable carbon offset credits per annum under a compliance regime.
CONTACT INFORMATION
For more information, please visit our website atstarroyalties.comor contact:
Chief Executive Officer and Director Chief Business Development Officer
apernin@starroyalties.com pbures@starroyalties.com
+1 647 801 3549 +1 437 997 8088
ABOUT
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this news release may constitute "forward-looking statements", including those regarding the strategies and business plans of the Company. Forward-looking statements are statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. When used in this news release, words such as "estimates", "expects", "plans", "anticipates", "will", "believes", "intends" "should", "could", "may" and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of
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