Elemental Altus and EMX to Merge to Create New Mid-Tier Gold Focused Royalty Company Elemental Royalty Corp.

Executive Summary

• Elemental Altus Royalties Corp. will acquire all outstanding shares of EMX Royalty Corporation in a court‑approved plan of arrangement, creating the mid‑tier streaming and royalty company Elemental Royalty Corp.
• Simultaneously, Tether Investments will purchase ~75 million Elemental Altus Shares at C$1.84 each for gross proceeds of US$1.0 billion, providing capital to repay EMX debt, fund further royalty acquisitions and leave the merged entity unlevered.
• The transaction values the combined company at roughly US$933 million (equity) with projected adjusted revenue of US$80 million in 2026; shareholders receive a premium of ~9.8‑21.5% and will own approximately 51% (Elemental Altus) and 49% (EMX) of the merged company.

Key Details

• Transaction Structure
• Court‑approved plan of arrangement; EMX shareholders receive either 0.2822 or 2.822 Elemental Altus Shares per EMX Share, depending on whether a pending share consolidation is completed.
• Post‑closing ownership: ~51 % Elemental Altus shareholders, ~49 % former EMX shareholders (fully diluted).

• Implied market cap of merged entity: US$933 million; equity value for EMX: US$4.567 billion.

• Financial Highlights

• Projected adjusted revenue 2025: US$70 million; 2026: US$80 million (≈67 % gold, 33 % base metals).
• Combined portfolio: 16 producing royalties, ~200 total royalties.

• Expected premium to EMX’s recent high: 9.8 % (spot) / 21.5 % (VWAP).

• Tether Concurrent Financing

• Purchase of ~75 million Elemental Altus Shares at C$1.84 per share → US$1.001 billion gross proceeds.
• Use of proceeds: repay EMX credit facility, fund royalty acquisitions (including two recently announced purchases), and provide capital to leave the merged company unlevered.

• Related‑party transaction; subject to shareholder approval under MI 61‑101.

• Share Consolidation

• Elemental Altus will complete a 1‑for‑10 share consolidation (post‑consolidation shares = pre‑consolidation shares ÷ 10). Timing to be announced later.

• Governance & Management

• New board: 3 directors from Elemental Altus, 2 from EMX.

• Executive team of merged company:

  • Juan Sartori – Executive Chairman
  • David Cole – CEO
  • Frederick Bell – President & COO

• Closing Conditions & Timeline

• Requires court approval, regulatory clearances, shareholder approvals (≥ 66⅔ % of EMX votes; simple majority for Elemental Altus resolutions), and TSX‑V/US exchange listings.
• Expected closing: Q4 2025.

• Post‑closing: EMX shares to be delisted from TSX‑V and NYSE American.

• Advisors & Fairness Opinions

• Financial advisors: National Bank Financial (Elemental Altus), CIBC World Markets (EMX).
• Legal counsel: Fasken Martineau DuMoulin, Greenberg Traurig, Bennett Jones, etc.

• Fairness opinions from GenCap Mining Advisory (Elemental Altus) and CIBC/Haywood Securities (EMX) deem consideration fair to shareholders.

• Conference Call

• Joint call/webcast scheduled for September 5 2025, 8 am PT / 11 am ET.

Notable Quotes

• Frederick Bell, CEO – Elemental Altus: “This transaction establishes one of the world’s premier gold‑focused emerging streaming and royalty companies… The support from Tether … provides the ability to pursue further valuable growth through acquisitions.”
• David Cole, CEO – EMX: “The merger represents a superb opportunity to combine two royalty companies with accelerating revenue streams… enhances shareholder value through increased liquidity, capital availability and discovery optionality.”

All forward‑looking statements are subject to risks and uncertainties detailed in the full release.