June 29, 2010 / 5:30 PM / 8 years ago

UPDATE 2-Altius posts profit on one-time gain

(Adds Millrock share purchase, paragraph 6)

* Fiscal Q4 EPS of C$0.77 vs yr-ago loss of C$0.05

* Revenues fall more than 97 pct to C$56,000

TORONTO, June 29 (Reuters) - Canada’s Altius Minerals Corp (ALS.TO) reported quarterly profit on Tuesday, following a gain from the sale of its 9.4 percent stake in International Royalty Co (IRC), but revenue nearly dried up because a strike at a Canadian mine.

Net income in its fourth quarter ended April 30 was C$22.1 million or 77 Canadian cents a share, compared with a year-ago net loss of C$1.5 million or 5 Canadian cents, said the mining royalty company in a statement.

Royalty companies receive a share of revenue from mines and other resource projects in exchange for an upfront payment, which the miners use to fund development.

Earnings benefited from a $28.4 million gain from the sale of its stake in a IRC, a royalty company that Royal Gold Inc (RGLD.O) bought in a cash-and-stock deal worth about C$749 million.

    Altius’ revenues fell more than 97 percent to C$56,000 on lower royalty revenues, due to the ongoing strike at Vale’s VALE5.SA Voisey’s Bay nickel-copper-cobalt mine in eastern Canada.

    Canadian exploration company Millrock Resources Inc (MRO.V) said in a separate statement that Altius will buy 375,000 units in Millrock at 35 Canadian cents per unit, for a total investment of C$131,250.

    With the purchase, Altius will own a 14.16 percent stake in Millrock, which will use the proceed for exploration under a strategic alliance with Altius.

    Altius shares were down 1 Canadian cents at C$10.27 in afternoon trade on the Toronto Stock Exchange. (Reporting by Julie Gordon; Editing by Frank McGurty)

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