Elemental Royalty Options Three Exploration Licenses in Serbia to BHP

On January 16, 2026, Elemental Royalty Corp. announced a definitive option and earn-in agreement with BHP Group Limited regarding three exploration licenses in Serbia (Lenovac North, Lenovac South, and Durlan Istok). Under the terms, BHP can acquire a 100% interest in these copper-gold projects by making $200,000 annual payments and completing $5,000,000 in exploration expenditures over five years. Crucially, Elemental retains a 2% Net Smelter Return (NSR) royalty on all projects. BHP has limited buyback rights (0.5% for $10 million) and will pay Elemental $200,000 annually in advanced royalties until production begins.

This news is Material - Positive for three reasons: - Counterparty Quality: Securing BHP as a partner is a major endorsement of Elemental’s technical team and their "royalty generation" model. It shifts the exploration risk and cost (minimum $5M spend) entirely to one of the world's largest miners while securing a long-term revenue tail. - Cash Flow Continuity: The $200k annual option payments plus $200k annual advanced royalty payments provide immediate, high-margin cash flow for assets that were previously non-earning exploration licenses. - Strategic Pattern: This follows a string of similar deals with majors (First Quantum in Dec 2025, Ivanhoe Electric in Nov 2025). It proves that the "new" Elemental (post-EMX merger) is successfully leveraging its massive portfolio of 200+ royalties and properties to attract tier-1 operators.

Elemental Royalty Corp. is a diversified precious and base metals royalty company. Its business model combines a core of producing royalties with a "royalty generation" engine that creates new royalties through low-cost exploration options. - Flagship Assets: Karlawinda (Australia - 2% NSR), Caserones (Chile - 0.473% NSR), and the recently acquired Laverton/Jasper Hills complex (Australia). - Scale: Following the EMX merger, the company holds approximately 200 royalties, with 16 currently paying.