Summit Royalties Secures Up to US$50 Million Revolving Credit Facility; Provides Other Corporate Updates

Summit Royalties Ltd. has entered into a credit agreement with the National Bank of Canada for a revolving credit facility. The initial commitment stands at US$25 million, with an accordion feature that allows for an additional US$25 million, bringing the total potential availability to US$50 million. The facility carries a three-year maturity with an extension option subject to lender consent.

Interest rates on the facility are based on SOFR or CORRA plus a credit spread of 2.50% to 4.00% per annum, tied to the company's net leverage ratio. A standby fee ranging from 0.5625% to 0.9000% applies to undrawn amounts. The proceeds are designated for working capital, general corporate purposes, and permitted acquisitions. Financial covenants require the company to meet specific net leverage ratio, interest coverage ratio, and minimum liquidity amount requirements. Security for the facility is provided by certain assets of Summit and its material subsidiaries.

In connection with the Star Royalties acquisition, Summit agreed to issue 269,696 common shares at a deemed price of $1.3905 to settle $375,000 in financial advisory fees. Additionally, the company granted 100,000 Restricted Share Units (RSUs) to an officer under the omnibus incentive plan, subject to a four-month statutory hold period.

Summit Royalties Ltd. (SUM) has entered into a credit facility, marking a strategic shift from its previous equity-funded, zero-debt growth model to a leveraged capital structure. The US$50 million facility is substantial relative to the company’s approximately $93 million market capitalization, signaling management’s intent to execute aggressively on its M&A mandate. This move provides a liquidity buffer and financial flexibility to pursue larger deals, aligning with the post-Star Royalties acquisition growth strategy. Additionally, the share issuance for advisory fees represents minor dilution of approximately 0.38% of outstanding shares, which is considered a standard transaction cost.

Summit Royalties Ltd. (SUM) trades on the TSX Venture Exchange and OTCQX (SUMMF). The company’s strategy is to build a scaled, cash-flowing precious metals royalty and streaming portfolio, which currently includes approximately 50 royalties and streams across Canada, the U.S., and Australia.

Producing assets include the Bomboré mine in Burkina Faso, which carries a 50% silver stream; the Madsen project in Ontario with a 1% NSR; and Pitangui in Brazil, subject to an $80/oz royalty. Key near-term catalysts include the Copperstone project in Arizona, which holds a 4% gold stream and is targeted for 2027 production, and the Pitangui development, which is expected to progress during 2026-27.

Management includes President & CEO Drew Clark, Chief Investment Officer Kevin MacLean, VP Finance Kathy Lai, and Board Director Jay Layman.