# Elemental invests US$25 million to expand Chapi Copper royalty exposure

- Link: https://www.directorstalkinterviews.com/elemental-invests-us25-million-to-expand-chapi-copper-royalty-exposure/4121256538
- Published: 2026-07-16T07:37:09+01:00
- Author: Amilia Stone

**Elemental Royalty Corporation** (NASDAQ: ELE, TSX: ELE) has announced that it 
has entered into a strategic US$25 million investment package with Quilla Resources
Inc. and its subsidiary Minera Pampa de Cobre S.A.C. to expand Elemental’s royalty
exposure to the producing Chapi Copper Project in Peru and support Quilla’s next
phase of growth.

The Transaction includes the acquisition of both equity in Quilla, and an additional
perpetual, uncapped 1.0% net smelter return royalty over the Pampa Negra and Candelaria
concessions, which are expected to be important contributors to Quilla’s planned
expansion of Chapi.

**Highlights**

 * **Existing Producing Royalty: **Elemental has agreed a strategic US$25 million
   investment package with Quilla to expand its existing royalty exposure to the
   Chapi copper project and support Quilla’s next phase of growth
 * **Increases Exposure to Project: **Elemental acquired an additional perpetual,
   uncapped 1.0% NSR royalty over Quilla’s Pampa Negra and Candelaria concessions,
   increasing Elemental’s royalty interest to a total of 3.0% NSR
 * **Expansion Plans underway: **Pampa Negra and Candelaria will be important contributors
   to Quilla’s future expansion of Chapi from 10,000 tonnes per annum to 30,000 
   tonnes per annum of copper cathode production
 * **Experienced team with track record of delivery: **Quilla’s management team 
   have an established history in Peru, including as senior executives at Rio Alto,
   Milpo, Buenaventura, and the Antamina mine.

> **Elemental Chief Executive Officer, David M. Cole, commented:** _“This transaction
> moves Chapi into a top ten royalty for Elemental by increasing our exposure to
> Quilla’s Phase 2 expansion at Pampa Negra and Candelaria following the recent 
> successful commissioning of the Chapi mine. The management team’s proven track
> record of operating in Peru sets them up for continued growth, while Chapi is 
> strategically located within the Southern Copper Belt alongside mines operated
> by Freeport-McMoRan, Buenaventura, Anglo American, and Southern Copper. We are
> very pleased to enhance our royalty on the project and simultaneously become a
> Quilla shareholder as they move toward listing on a public Exchange”_

**Existing Chapi Royalty**

In February 2025, EMX Royalty Corporation acquired a 2.0% NSR royalty on minerals
produced from the approximately 26,000 hectare property owned by Quilla, as well
as a 2.0% NSR royalty from any minerals that are produced from outside the Property
Royalty area, but that are processed at the Chapi Mine processing facilities. The
agreement also includes a two-kilometre area of interest (_see Figure 1_) around
the Property Royalty area, and any property acquired by MPC within this AOI will
also be subject to a 2.0% NSR royalty, stepping down to a 1.0% NSR royalty in July
2034.

Elemental acquired EMX in November 2025.

_Figure 1: Existing and additional royalty Area of Interest over the Chapi Copper
Project, Peru_

![Chapi](https://wp-elemental-royalty-2026.s3.eu-west-2.amazonaws.com/media/2026/
07/Chapi-1024x723.jpg "Elemental invests US$25 million to expand Chapi Copper royalty
exposure (ELE)")

**Transaction Details**

Under the terms of the transaction, Elemental provided aggregate consideration of
US$25 million to Quilla through a combined royalty and equity investment package.
The package was structured to expand Elemental’s royalty exposure to the key growth
areas at Chapi while also providing Quilla with capital in advance of Listing as
it advances the Chapi exploration programme and expansion plans.

Elemental acquired an additional 1.0% NSR royalty over all minerals produced from
the Pampa Negra and Candelaria concessions (_see Figure 1_). The royalty is perpetual,
uncapped and not subject to any buyback, step-down or advance payment provisions.
This adds to Elemental’s existing 2.0% NSR royalty footprint at Chapi and results
in Elemental holding a 3.0% NSR royalty over Pampa Negra and a 3.0% NSR royalty 
over Candelaria, with the Candelaria royalty stepping down to 2.0% NSR in July 2034.

As part of the same transaction package, Elemental subscribed for shares in the 
company, representing approximately 9% of Quilla. The equity investment provides
Elemental with additional alignment and upside as Quilla advances its planned expansion
to 30,000 tonnes per annum of copper cathode and looks to go public.

Elemental funded the Transaction from cash on hand. Proceeds from the Transaction
are to be used by Quilla to fast-track exploration as well as permitting and engineering
work related to the planned expansion.

**Background on Quilla**

Quilla is a private Canadian company that, in December 2024, acquired MPC and the
associated Chapi licence areas. Quilla was founded by a select group of shareholders,
including Victor Gobitz, looking to rapidly build an intermediate-sized base metals
company. Mr. Gobitz is a senior mining executive with extensive recent leadership
experience at two of Peru’s most prominent mining companies. Prior to joining Quilla,
he served as President and General Manager of the world-class Antamina mine, following
his tenure as President and Chief Executive Officer of Compañía de Minas Buenaventura.

**The Chapi Copper Project**

Chapi is a former producing copper project that restarted production in Q1 2026 (
see announcement dated March 2, 2026).

The Chapi Mine is located in the prolific Southern Peru porphyry copper belt across
the Moquegua and Arequipa Departments, which host large scale operations including
Southern Copper’s Toquepala, Anglo American’s Quellaveco Project, and Freeport-McMoRans’s
majority owned Cerro Verde mine. The asset sits at an elevation of approximately
2,750 meters and has ready access approximately 50 kilometers south-southeast from
the city of Arequipa. The mine, which was in operation from 2006-2012, reached maximum
production levels of 8,500 tonnes per annum.

The historic Chapi Mine is comprised of two principal open pits, underground workings,
a crushing and agglomeration circuit, heap leach pads, a solvent extraction plant,
an electrowinning copper cathode plant, and related infrastructure including mine
camp, office facilities, water supply, and power.

The restart and successful commissioning of the SX-EW plant in 2026 was achieved
on time and budget, reflecting management’s strong track record as operators and
work has begun on Phase 2 expansion as well as fast tracking investment in exploration
and ongoing investment to optimise operations.

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