Elemental Royalty has signed an exploration and option agreement with Robinson Holdings, a US subsidiary of KGHM Polska Miedź, covering four copper prospects in Nevada. The agreement gives Robinson Holdings the right to earn 100% ownership of the Royston, Big E, Tango and Whiskey projects over six years.
For Elemental, the transaction provides exposure to future exploration success while limiting direct spending. The company will receive execution payments totalling US$315,000 and may receive option payments of up to US$600,000 for each project. Robinson Holdings may spend up to US$5 million on exploration at each project, with Elemental providing technical and operational support.
If Robinson Holdings exercises an option on a project, Elemental will keep a 2% net smelter return royalty on that project. The agreement also includes annual advance royalty payments starting at US$50,000 per project and increasing by US$10,000 each year. These payments are capped at US$1.75 million or stop when commercial production begins.
Elemental may also receive milestone payments as the projects advance. These payments are tied to resource declaration, completion of a preliminary economic assessment and completion of a feasibility study. This gives Elemental several potential sources of value before any mine development decision is made.
Elemental retains royalty upside if a discovery is made, while Robinson Holdings carries the main exploration cost. That reduces near-term risk for Elemental and allows the company to keep capital available for other royalty opportunities.
The four projects are located in Mineral and Nye Counties, Nevada. They were generated through Elemental’s western US exploration work and target porphyry copper systems. The properties are in an established mining jurisdiction with infrastructure and access, which may support exploration work.
Elemental Royalty Corporation (NASDAQ:ELE, TSX:ELE) is a globally diverse, gold-focused portfolio featuring world-class royalties contributing to peer-leading revenue and strong growth.
