Elemental Acquires Royalty Portfolio, Sells Generation Business
News related to:Elemental Royalty Corporation · 2 min read
Elemental Royalty Corporation, a publicly traded company listed on NASDAQ (NASDAQ: ELE) and the Toronto Stock Exchange (TSX: ELE), has announced significant changes to its business portfolio. The company has entered into agreements that are expected to substantially increase the scale and cash-generative capacity of its royalty portfolio, simplify its corporate structure, and reduce its ongoing cost base.
The first major transaction involves the acquisition of a high-quality portfolio of precious metals assets, including five streams and royalties, for a total consideration of US$290 million. This acquisition, which includes a silver stream on i-80 Gold Corp's Ruby Hill Complex and a gold stream on Mansa Resources' Kouroussa Mine, is expected to be immediately accretive to the company's NAV per share and revenue per share. The portfolio also adds material exposure in North America and increases the Company's precious metals weighting.
In conjunction with this acquisition, Elemental has also announced the strategic divestment of its Generation Business, comprising wholly-owned exploration projects. The Generation Business will be acquired by Carlin East Inc., a company managed by David M. Cole, who has resigned from his role as CEO and Director at Elemental to take up a leadership position at Carlin East. As consideration for the transaction, Elemental will acquire a cornerstone equity stake in Carlin East, and Frederick Bell, the current COO and President of Elemental, has been appointed to the role of CEO and Director on the Board.
The acquisition of the Stream and Royalty Portfolio is expected to provide immediate and material uplift to Elemental's revenue base. The portfolio includes the Kouroussa mine, which is currently delivering from i-80's Archimedes property and is expected to step down to 10% after delivering 2.5 million ounces of silver. The acquisition also includes the 100% owned Ruby Hill Complex and Granite Creek properties, which are located in northern Nevada, USA, and are expected to provide exposure to high-grade polymetallic exploration zones.
The strategic divestment of the Generation Business allows Elemental to retain the existing portfolio of over 100 early-stage royalties accumulated over more than a decade and participate as the largest shareholder in future royalty generation through ownership of Carlin East. This move is expected to reduce Elemental's G&A by over 25%, with additional savings expected, and streamline the company structure.
The company will hold a conference call and webcast on Tuesday, September 22, 2026, at 11:00 a.m. Eastern Time to discuss these transactions. The webcast registration can be accessed by visiting the Presentation and Events page on the Company's website at: www.elementalroyalty.com/investors/presentation-events. An archived version of the webcast will be available on the website for one year following the webcast.