Almadex Announces Sale of Royalty Interests
Almadex uses royalty monetization proceeds to fund exploration, despite the stock drifting lower due to a lack of near-term catalysts.
Almadex Minerals Ltd. (DEX) has entered into a royalty purchase agreement with Empress Royalty Corp. to sell a portfolio of net smelter return (NSR) royalty interests. The total consideration for the transaction is US$2,500,000, structured as US$1,000,000 in cash and 2,562,802 common shares of Empress Royalty Corp. valued at US$1,500,000.
The sold portfolio includes 1.5% and 2.0% NSR royalties covering precious and base metal projects in Canada, the United States, and Mexico. The transaction is subject to customary closing conditions, including TSX Venture Exchange approval for the Empress share issuance. Empress shares issued are subject to a four-month and one-day statutory hold period.
This deal follows a June 2026 transaction where Almadex sold its 1.75% NSR on the El Cobre project for US$500,000.
Almadex Minerals Ltd. (DEX) has executed a transaction described as a standard working capital management tool for an exploration-stage company. The deal converts illiquid royalty assets into immediate cash and a minority equity stake in a royalty company. The US$1M cash component directly extends the exploration runway, offsetting the negative operating cash flow reported in FY2025.
The sale does not alter the company's exploration-stage status, nor does it provide a near-term production or revenue catalyst. Given the stock's downtrend and the routine nature of royalty monetization in this sector, the market impact is expected to be muted.
Almadex Minerals Ltd. (DEX) is an exploration company focused on large metal endowments in porphyry, epithermal, and carbonate replacement deposit (CRD) systems. Its primary geographic focus spans the Western United States, including Arizona, Nevada, Utah, Colorado, and New Mexico, as well as the Yukon in Canada.
Key projects include the New Hope porphyry copper-gold deposit in Arizona, the Paradise porphyry lithocap in Nevada, the Logan zinc-silver-indium CRD in the Yukon, and the Rattlesnake porphyry-epithermal project in Arizona. The company utilizes six in-house diamond drill rigs to maintain cost discipline and generate third-party drilling revenue.