EMX Acquires a Royalty on a Development-Stage Copper Asset in Chile

On November 12, 2025, EMX Royalty Corporation announced it has acquired a 1.25% Net Smelter Return (NSR) royalty on the development-stage Puquios copper project in Chile. The consideration paid was USD $6 million upfront, with an additional USD $2 million due upon the commencement of construction.

Concurrently, EMX is participating in a private placement financing for the project's owner, subscribing for 6.94 million shares at CAD $0.36 per share for a total investment of CAD $2.5 million. The proceeds of this financing are intended to advance the Puquios project towards a final investment decision.

The news release also highlighted key project metrics from a pre-feasibility study, including 26 million tonnes of proven and probable reserves at a grade of 0.494% copper, with a projected mine life of 14.2 years.

This acquisition is a strategically sound, "business-as-usual" transaction for EMX that reinforces its business model, but its impact is overshadowed by the imminent, transformative merger with Elemental Altus Royalties Corp.

• Strategic Execution: The deal is a classic EMX transaction: acquiring a royalty on a quality, development-stage asset in a top-tier jurisdiction (Chile) and simultaneously investing in the operator to help advance the project. This aligns capital with their royalty interest, a prudent strategy to ensure their royalty assets move toward production. Copper is a key commodity for the global energy transition, making this a timely addition to the portfolio.

• Financial Impact: The USD $6 million upfront payment is a notable use of capital, representing approximately 35% of the company's Q2 2025 cash balance of USD $17.2 million. However, the company's financial position is set to be completely transformed upon the closing of the Elemental Altus merger and the associated USD $100 million financing from Tether. This deal should be viewed as one of the first acquisitions for the pro-forma, well-capitalized combined company.

• Context of the Merger: This news comes just two days after EMX received the final court order for its plan of arrangement with Elemental Altus, with closing expected in mid-November. The merger is the most significant event for the company, creating a new mid-tier royalty player with a projected US$70 million in revenue for 2025. In this context, the Puquios deal is a positive but routine "bolt-on" acquisition rather than a standalone, game-changing event. It demonstrates that management is not distracted by the merger and continues to execute on its deal pipeline.

Overall, the news is positive. It adds a promising development asset and will likely be accretive in the long term. However, given its size relative to the impending merger, its immediate impact on the stock price is likely to be muted. The market's focus remains squarely on the successful completion of the merger.

EMX Royalty Corporation is a precious and base metals royalty company. It employs a hybrid business model that includes both acquiring existing royalties and organically generating new royalties. The royalty generation strategy involves using its in-house geological team to acquire and advance mineral properties, which are then optioned to partner companies who fund exploration in exchange for earning an interest, while EMX retains a royalty interest and receives other compensation.

Prior to the merger, EMX's flagship producing assets include: - Caserones (Chile): An effective 0.8306% NSR on the large-scale copper-molybdenum mine operated by Lundin Mining. - Timok (Serbia): A 0.3625% NSR on the high-grade Cukaru Peki copper-gold mine operated by Zijin Mining. - Leeville (USA): A 1% GSR on the gold mining operations in Nevada, part of the Nevada Gold Mines JV. - Gediktepe (Türkiye): A 10% NSR on oxide production and a 2% NSR on sulfide production.