Elemental Executes Option Agreement to Sell the Hachita Porphyry Copper-Gold Project
Rhea-AI Summary
Elemental (TSXV: ELE / NASDAQ: ELE) executed an option agreement with First Quantum to explore the Hachita porphyry copper-gold project in New Mexico.
Key commercial terms: execution payment US$50,000, option payments US$750,000 (total >US$800,000 over five years), and partner-funded exploration expenditures of US$6,000,000 to earn 100% of the project. Upon exercise Elemental retains a 3% NSR (1% may be bought back for US$5,000,000). Elemental will receive annual advanced royalty payments of US$100,000 and milestone payments of US$500,000 (feasibility) and US$2,500,000 (development decision).
Positive
- Partner-funded exploration commitment of US$6,000,000 over five years
- Upfront and staged cash to Elemental totalling over US$800,000 during earn-in
- Retains a 3% NSR plus recurring US$100,000 AAR and US$3,000,000 milestone pool
Negative
- 1% of NSR can be bought back for US$5,000,000, reducing long-term royalty by one-third
- First Quantum must spend US$6,000,000 over five years to earn the project (earn-in contingent)
Key Figures
Market Reality Check
Peers on Argus
No peers in the provided universe showed momentum flags or same-day headlines, suggesting the -3.54% move and elevated volume are more stock-specific than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 26 | Royalty acquisition | Positive | +10.4% | Completed A$80M acquisition of 2% GRR royalties over Laverton and Jasper Hills. |
Limited history, but the last major royalty acquisition headline showed a positive price reaction aligned with the constructive news.
In the past months, Elemental Royalty completed the acquisition of an uncapped 2% GRR over Genesis Minerals’ Focus Laverton Project and an existing 2% GRR on Brightstar’s Jasper Hills Project on Nov 26, 2025 for A$80 million (c. US$52 million), which saw the stock rise 10.39%. That deal expanded its royalty footprint over multi-million ounce resources. Today’s Hachita option agreement with First Quantum continues the strategy of growing a portfolio of copper-gold royalties via partner-funded exploration and staged payments.
Regulatory & Risk Context
Market Pulse Summary
This announcement adds another copper-gold royalty opportunity to Elemental’s portfolio through an option agreement with First Quantum. The structure combines execution and option payments exceeding US$800,000, a potential 3% NSR, annual royalties of US$100,000, and up to US$6,000,000 of partner-funded exploration. Compared with the recent Laverton royalty acquisition on Nov 26, 2025, it reinforces a strategy of leveraging technical expertise and third-party capital to grow long-term royalty exposure.
Key Terms
net smelter return ("NSR") royalty financial
annual advanced royalty ("AAR") financial
porphyry copper-gold technical
skarn mineralization technical
Feasibility Study technical
AI-generated analysis. Not financial advice.
Vancouver, British Columbia--(Newsfile Corp. - December 4, 2025) - Elemental Royalty Corporation (TSXV: ELE) (NASDAQ: ELE) ("Elemental" or the "Company") is pleased to announce that Bronco Creek Exploration Inc. ("BCE"), a wholly owned subsidiary of Elemental, has executed an option agreement (the "Agreement") with First Quantum Minerals Limited ("First Quantum"), an Ontario, Canada, corporation (TSX: FM) for the Hachita project (the "Project") in order to explore for porphyry copper-gold style mineralization in southwestern New Mexico, U.S.
The Agreement provides Elemental with an execution payment, staged option payments, and required work commitments on the Project during the earn-in period. Additionally, upon earn-in for the Project, Elemental will receive a
Highlights
- Option agreement signed with First Quantum to explore for copper-gold porphyry in New Mexico
- The agreement includes execution and options payments to Elemental totalling over US
$800,000 over a five-year earn-in period - Upon earn-in, Elemental will be granted a
3% NSR royalty, as well as US$100,000 AAR and other milestone payments as the Project advances - Demonstration of the organic royalty generation model providing long-term value through partner company funded programs paired with their technical expertise
The Project was acquired by staking of open ground after recognizing untested targets in the underexplored Sylvanite District during regional generative exploration efforts in the Laramide belt of southwestern U.S. The agreement serves as another example of generating compelling district-scale opportunities and organically growing the company's royalty portfolio through its royalty generation efforts and technical expertise.
Commercial Terms Overview
Under the terms of the Agreements, First Quantum can earn
Upon option exercise by First Quantum, Elemental will retain a
David M. Cole, Chief Executive Officer of Elemental, commented: "This transaction on the Hachita Project represents another excellent example of Elemental's impressive technical expertise in identifying prospective targets in underexplored jurisdictions and thereby attracting world-class exploration partners. We look forward to working with First Quantum to advance Hachita and seeing the project progress further through a formal exploration campaign. Project generation remains a core tenet of our business model as we continue to build our portfolio of royalty interests."
Hachita Project Overview
Hachita is located approximately 95 km SE of Lordsburg, New Mexico, in the Sylvanite Mining District. The Hachita project targets Laramide porphyry copper-gold and skarn mineralization in an underexplored district in the eastern portion of the Laramide Porphyry Belt. Multiple square kilometer overlapping alteration zones, robust geochemical anomalies, and coincident geophysical responses indicate the potential for two distinct targets on the Project: a porphyry copper-gold system at the Western Target and a copper-gold skarn system at the Copper Dick Extension ("CDE") Target.
The Western Target is a porphyry copper-gold system exposed at surface with widespread sericite-pyrite alteration, locally abundant quartz veins, and copper oxide mineralization. Complex porphyry-style alteration zonation is exposed over a two by three square kilometer area, indicative of large-scale hydrothermal system. The system is faulted and rotated by post-mineral normal faults. The observations to-date are consistent with the shallower, upper pyrite halo portion of the porphyry system preserved in the northwest with portions of the deeper parts of the system outcropping to the southeast. The proximal, higher temperature and potentially higher-grade core of the system representing the primary target here has yet to be found. Airborne drone magnetics delineated a magnetic low which correlates well with the outcropping sericite-pyrite alteration zone. Additionally, historical induced polarization ("IP") data displays a strong chargeability response within the target area, which may represent increasing sulfide content at depth.
The Copper Dick Extension Target is a copper-gold bearing garnet-pyroxene skarn target exposed at surface near the historical Copper Dick Mine. Mineralization at the mine is truncated to the north by a post-mineral normal fault, indicating the skarn mineralization and the Cretaceous carbonate host rocks that serve as an ideal host may be preserved at depth in the hanging wall. Historical IP data support this interpretation; a strong chargeability response over the Copper Dick Extension Target may represent the presence of sulfide mineralization at depth.
This transaction is an example of the execution of the royalty generation business model in providing turn-key and drill ready exploration projects to partner companies in exchange for royalty interests and pre-production cash flow.
David M. Cole
CEO and Director
For more information, please contact:
| David M. Cole | info@elementalroyalty.com |
| CEO | |
| Tara Vivian-Neal | info@elementalroyalty.com |
| Investor Relations |
TSXV: ELE | NASDAQ: ELE | ISIN: CA28619K1093 | CUSIP: 28619K109
About Elemental Royalty Corporation.
Elemental is a new mid-tier, gold-focused streaming and royalty company with a globally diversified portfolio of 16 producing assets and more than 200 royalties, anchored by cornerstone assets and operated by world-class mining partners. Formed through the merger of Elemental Altus and EMX, the Company combines Elemental Altus's track record of accretive royalty acquisitions with EMX's strengths in royalty generation and disciplined growth. This complementary strategy delivers both immediate cash flow and long-term value creation, supported by a best-in-class asset base, diversified production, and sector-leading management expertise.
Elemental Royalty trades on the TSX Venture Exchange and the Nasdaq under the ticker "ELE".
Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-V.) accepts responsibility for the adequacy or accuracy of this press release.
Qualified Person
Michael P. Sheehan, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
Cautionary note regarding forward-looking statements
This news release contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology.
Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies.
Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Elemental Royalty to control or predict, that may cause Elemental Royalty' actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: the impact of general business and economic conditions, the absence of control over the mining operations from which Elemental Royalty will receive royalties, risks related to international operations, government relations and environmental regulation, the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with Elemental Royalty' expectations; accidents, equipment breakdowns, title matters, labour disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions; liability, competition, loss of key employees and other related risks and uncertainties. For a discussion of important factors which could cause actual results to differ from forward-looking statements, refer to the annual information form of Elemental Altus for the year ended December 31, 2024. Elemental Altus undertakes no obligation to update forward-looking statements and information except as required by applicable law. Such forward-looking statements and information represent management's best judgment based on information currently available. No forward-looking statement or information can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276952
FAQ
What did Elemental announce about the Hachita project on December 4, 2025 (ELE)?
How much cash will Elemental (ELE) receive from the First Quantum option on Hachita?
What royalties and ongoing payments will ELE keep if First Quantum earns Hachita?
Can First Quantum reduce Elemental's Hachita royalty and how (ELE)?
What exploration commitment did First Quantum agree to for the Hachita option (ELE)?
