Summit Royalties Announces Agreement to Acquire Royalty on Newmont's Saddle North Deposit

Executive Summary

• Summit Royalties entered into an agreement to acquire a 1.0% NSR royalty on Newmont’s Saddle North deposit for C$5 million paid in Summit common shares.
• The transaction is expected to be highly accretive on a net‑asset‑value per share basis, adding exposure to ~9 Moz Au and ~4.8 Blb Cu resources.
• A buyback option allows Newmont to repurchase up to 50% of the royalty for C$750,000 during the first five years after commercial production begins.

Key Details

• Royalty Interest: 1.0% net smelter return (NSR) on Saddle North deposit.
• Owner/Operator: Newmont Corporation.
• Consideration: C$5 million paid in 2,832,861 Summit common shares at a deemed price of $1.765 per share (20‑day weighted average).
• Buyback Option: Newmont may repurchase up to 50% of the NSR royalty for C$750,000 at any time during a five‑year period commencing when Saddle North enters commercial production.
• Resource Estimate (Saddle North Technical Report):
• Indicated resources: ~3.47 Moz Au and 1.81 Blb Cu.
• Inferred resources: ~5.46 Moz Au and 2.98 Blb Cu.
• Total contained metals (indicated + inferred): ≈9 Moz Au and ≈4.8 Blb Cu.
• Geographic Context: Located in the Golden Triangle, north‑west British Columbia, near Newmont’s Red Chris mine with strong infrastructure and workforce availability.
• Accretion Impact: Management states the royalty is “highly accretive on a net asset value per share basis.”

Notable Quotes

“We are excited to announce this proposed acquisition of a large, high‑quality royalty on Newmont's Saddle North project… The acquisition … supports our mandate of providing Summit shareholders with high‑quality precious metals exposure.” – Drew Clark, President & CEO, Summit Royalties Ltd.