Elemental Royalty Executes Four Option Agreements to Sell Projects in Arizona to Ivanhoe Electric

On November 17, 2025, Elemental Royalty Corporation announced it has executed four option agreements with Ivanhoe Electric Inc. for copper exploration projects in Arizona. Under the agreements, Ivanhoe Electric can earn a 100% interest in the Dragon's Tail, Copper King, Sleeping Beauty-Jasper Canyon, and Lomitas Negras projects over an eight-year period. To do so, Ivanhoe must make an execution payment of US$240,000, subsequent option payments up to US$2,325,000, and incur cumulative exploration expenditures of up to US$10,800,000. Upon exercising the options, Elemental will retain a 2.5% Net Smelter Royalty (NSR) on each project. Ivanhoe Electric will have the right to buy down 0.5% of the NSR on each project for US$4,000,000.

The option agreements with Ivanhoe Electric are a positive development that validates the royalty generation model acquired through the recent merger with EMX Royalty. Partnering with a well-respected and technically proficient group like Ivanhoe Electric significantly de-risks the exploration phase and adds substantial credibility to these projects. The structure of the deal is favorable for Elemental, as it requires no capital outlay while providing significant potential upside through retained royalties on highly prospective ground.

However, this news should be viewed as a routine execution of the company's business strategy rather than a material, game-changing event. The immediate financial impact is minimal (US$240,000), and any significant value from the retained royalties is contingent on exploration success and is likely years away from realization.

This news comes just four days after the company completed its transformational merger with EMX Royalty and closed a US$100 million financing with Tether Investments. Those events were the true game-changers, establishing Elemental Royalty Corp. as a new, well-capitalized mid-tier player. This Ivanhoe deal is an excellent first step for the newly combined entity, demonstrating the value of the EMX royalty generation pipeline, but it does not fundamentally alter the company's financial profile in the short term. The market's focus remains on the successful integration of the two companies and the deployment of new capital for larger, cash-flowing or near-term cash-flowing acquisitions.

Elemental Royalty Corporation is a recently formed, mid-tier, gold-focused royalty and streaming company, resulting from the November 2025 merger of Elemental Altus Royalties and EMX Royalty Corporation. The company holds a globally diversified portfolio of over 200 royalties, including 16 currently producing revenue.

Rather than a single flagship project, the company's value is derived from a portfolio of cornerstone producing assets, including: - A 2% NSR on Capricorn Metals' Karlawinda gold mine in Australia. - A 0.473% NSR on Lundin Mining's Caserones copper mine in Chile. - A tiered 2-3% NSR on Allied Gold's Korali-Sud deposit at the Sadiola Complex in Mali. - A 4.5% NSR on the Bonikro gold mine in Cote d'Ivoire. The company also has a robust development pipeline and a royalty generation business that actively creates new royalties through strategic exploration partnerships.