Elemental Altus acquires Laverton royalty

Executive Summary

• Elemental Altus Royalties Corp. is acquiring two cornerstone gold royalties: a $52 M uncapped 2 % GRR on Genesis Minerals’ Focus Laverton project (Western Australia) and a $16.5 M uncapped 2‑2.5 % NSR on Pasofino’s feasibility‑stage Dugbe project (Liberia), with up to $3.5 M contingent payments.
• The Laverton transaction also adds an existing 2 % GRR on Brightstar Resources’ producing Jasper Hills royalty, creating a combined 4 % GRR over ~67 km² and an additional 2 % GRR over ~240 km² in the district.
• Both acquisitions substantially increase Elemental Altus’s near‑term cash‑flow exposure (Laverton) and long‑term upside (Dugbe), positioning the company as a leading diversified gold royalty holder.

Key Details

• Transaction Structure – Laverton:
• Purchase of an Australian private company holding the Focus Laverton and Jasper Hills royalties for AU$80 M (≈US$52 M) cash.

• Closing expected prior to Q4 2025.

• Focus Laverton Royalty (2 % GRR):

• Covers ~2.1 Moz measured & indicated + 1.5 Moz inferred resources adjacent to Genesis’s operating mill.
• Overlaps with an existing 2 % GRR covering ~0.75 Moz Measured‑Indicated + 1.1 Moz Inferred at the same project.

• Combined stake creates a 2‑4 % GRR in a Tier 1 jurisdiction (Western Australia).

• Jasper Hills Royalty (2 % GRR – producing):

• Current production toll‑treated through Genesis’s Laverton mill; Brightstar advancing stand‑alone development.

• Resource base: 147 k oz Measured‑Indicated + 160 k oz Inferred; 77 k oz Proven & Probable ore reserve.

• Transaction Structure – Dugbe (Liberia):

• Acquisition of a wholly‑owned subsidiary of Ecora Resources PLC for US$16.5 M cash plus contingent payments up to US$3.5 M:

  • $700k upon construction start, $2.8 M upon commercial production, or 150,000 oz royalty‑linked gold production.

• Dugbe Royalty (2.0‑2.5 % NSR):

• Initial 2.0 % NSR on a 3.3 Moz Measured & Indicated resource; can increase to 2.5 % under certain production/gold price triggers.
• Feasibility study (2022) projects a 14‑year mine life, ~162k oz Au/year at $1,700/oz gold price; updated study underway.

• Contains 2.8 Moz mineral reserves and extensive exploration upside across up to 1,257 km² royalty coverage.

• Financial Position (as of Sept 1 2025):

• Cash: US$32 M

• Undrawn credit facility: US$50 M with National Bank of Canada, CIBC, and RBC.

• Operational Highlights – Laverton District:

• Total royalty coverage after acquisition: 4 % GRR over 67 km² + 2 % GRR over an additional 240 km² (total 307 km²).

• Resource/Reserve summary for the district (JORC‑2012):

  • Indicated: 45 Mt @ 1.5 g/t Au → 2.1 Moz
  • Inferred: 23 Mt @ 2.1 g/t Au → 1.6 Moz
  • Probable ore reserve: 13 Mt @ 1.3 g/t Au → 546k oz

• Operational Highlights – Jasper Hills:

• Historical production: 350 k t @ 3.83 g/t Au (Fish pit) and 280 k t @ 1.5 g/t Au (Lord Byron).

• Current development: underground mining at Fish (portal opened Apr 2025, first ore Jun 2025); open‑pit Lord Byron slated for Q3 2026 with a 1 Mt/yr mill up to 2030.

• Strategic Rationale (CEO Quote):

  “These multimillion‑ounce acquisitions highlight our strategy of securing both cornerstone and growth‑stage gold royalties in quality jurisdictions… They expand our near‑term revenues and reinforce our long‑term pipeline, positioning Elemental Altus as the most compelling royalty growth story in the sector.”

Notable Quotes

• Frederick Bell, CEO: “Laverton enhances our near‑term cash flow profile while Dugbe adds a large‑scale feasibility‑stage project with long‑life, multimillion‑ounce potential. Together they expand our near‑term revenues and reinforce our long‑term pipeline.”