Summit signs deal to acquire Saddle North NSR royalty

Executive Summary

• Summit Royalties Ltd. has entered into an agreement to acquire a 1.0% net smelter return (NSR) royalty on Newmont Corp.'s Saddle North deposit.
• The transaction consideration is $5 million, payable entirely in Summit common shares, representing an accretive acquisition for Summit shareholders.
• The deal includes a buyback option allowing Newmont to repurchase 50% of the royalty for $750,000 within five years of commercial production, and highlights significant gold and copper resources at the Saddle North project.

Key Details

• Royalty Interest: 1.0% NSR royalty on the Saddle North deposit.
• Counterparty: Newmont Corp. (owner/operator).
• Consideration: $5 million total value, paid in 2,832,861 common shares of Summit Royalties.
• Share Price Basis: Deemed price of $1.765 per common share, based on the 20-day weighted average price as of the agreement date.
• Buyback Option: Newmont holds the right to repurchase 50% of the NSR royalty for $750,000 at any time during the five-year period following the commencement of commercial production at Saddle North.
• Saddle North Mineral Resources (Indicated): Approximately 3.47 million ounces of gold and 1.81 billion pounds of copper.
• Saddle North Mineral Resources (Inferred): Approximately 5.46 million ounces of gold and 2.98 billion pounds of copper.
• Project Location: Golden Triangle, northwestern British Columbia, Canada.
• Project Status: Owned by Newmont (acquired in 2021); previously owned by GT Gold Corp. (maiden resource estimate published in 2020).
• Strategic Rationale: CEO Drew Clark stated the acquisition is "highly accretive on a net-asset-value-per-share basis" and provides exposure to a large gold-copper porphyry target under the stewardship of the world's largest gold producer.
• Conditions: The acquisition is subject to customary conditions precedent, with completion expected in the near future.

Notable Quotes

• "We are excited to announce this proposed acquisition of a large, high-quality royalty on Newmont's Saddle North project... The acquisition of the Saddle North royalty is highly accretive on a net-asset-value-per-share basis and provides exposure to a large gold-copper deposit under the stewardship of the world's largest gold producer." — Drew Clark, President and CEO, Summit Royalties.