Elemental Royalty Announces Amended and Upsized Credit Facility to up to US$200M

Executive Summary

• Elemental Royalty Corporation signed an amendment to its revolving credit facility, upsizing the committed amount to US $150 million with an additional US $50 million accordion feature, bringing total potential borrowing capacity to US $200 million.
• The facility is led by National Bank Capital Markets (sole bookrunner) and co‑lead arrangers National Bank Capital Markets, CIBC, and Scotia, with NBC acting as administrative agent.
• The expanded credit line provides stronger cash position and financial flexibility to support future royalty acquisitions and streaming transactions following a “transformational” 2025 year that included a merger and Nasdaq listing.

Key Details

• Facility Size: US $150 million committed; optional US $50 million accordion (total possible US $200 million).
• Lenders / Participants: National Bank of Canada (Administrative Agent), CIBC, Scotiabank, and National Bank Capital Markets (Co‑Lead Arranger & Sole Bookrunner).
• Term: Three years, maturing on 27 Feb 2029; extendable by mutual agreement.
• Interest Rates: Borrowed amounts subject to SOFR + 2.25%–3.5% per annum; undrawn portion incurs standby fee of 0.50%–0.78% per annum, based on leverage ratio conditions.
• Current Status: Amendment to previously undrawn US $50 million facility; now fully available for drawdown as needed.
• Purpose / Use of Proceeds (implied): To provide headroom for “material future transactions,” including royalty acquisitions and streaming opportunities.
• Commentary: CFO Stefan Wenger highlighted the credit expansion as a vote of confidence from banking partners and a tool to support continued growth after 2025’s merger and Nasdaq listing.

Notable Quotes

“Upsizing our credit facility represents a strong vote of confidence from our banking partners … and reflects the momentum of our business following a transformational year in 2025… This expanded capacity enhances Elemental's strong cash position and financial flexibility and provides additional headroom to support more material future transactions.” – Stefan Wenger, Chief Financial Officer

Materiality Assessment: Material – Positive (significant financing that materially improves the company’s liquidity and growth capacity).