Elemental Royalty Increases Chapi Project Royalty Through Quilla Investment Package
Rhea-AI Summary
Elemental Royalty (NASDAQ: ELE, TSX: ELE) announced a strategic US$25 million investment package with Quilla Resources and its subsidiary Minera Pampa de Cobre to expand Elemental's royalty exposure to the producing Chapi Copper Project in Peru and support Quilla's next growth phase.
The Transaction combines a royalty and equity investment. Elemental acquired an additional perpetual, uncapped 1.0% NSR royalty over the Pampa Negra and Candelaria concessions, lifting its interest there to a total 3.0% NSR (with Candelaria stepping down to 2.0% NSR in July 2034). Elemental also subscribed for shares representing about 9% of Quilla, funded from cash on hand. According to the company, Quilla plans to expand Chapi copper cathode production from 10,000 to 30,000 tonnes per annum, using proceeds to fast-track exploration, permitting and engineering for expansion.
Positive
- US$25 million royalty and equity package expands Chapi exposure
- Additional 1.0% NSR raises Pampa Negra and Candelaria to 3.0% NSR
- Equity stake of approximately 9% in Quilla adds aligned upside
- Transaction fully funded from Elemental's cash on hand, no new financing disclosed
- Chapi expansion targeted from 10,000 to 30,000 tpa copper cathode
- Existing Candelaria NSR only steps down to still-material 2.0% in July 2034
Negative
- Elemental commits US$25 million of cash, increasing capital at risk in one project
- Candelaria NSR scheduled to step down from 3.0% to 2.0% in July 2034
- Increased exposure linked to Quilla's successful execution of Chapi expansion plans
News Explained
Elemental has entered a cash-funded package for a perpetual, uncapped Chapi royalty and a Quilla stake; Phase 2 work has begun.
The July 15 release states that Elemental entered into a
The additional
The release says work has begun on Phase 2 expansion, while transaction proceeds are allocated to exploration and permitting and engineering work.
News Market Reaction – ELE
On the day this news was published, ELE declined 7.69%, reflecting a notable negative market reaction. Argus tracked a trough of -7.5% from its starting point during tracking. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $84M from the company's valuation, bringing the market cap to $1.01B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 18 | Dividend declaration | Positive | +0.5% | Quarterly cash dividend of US$0.03 per share for 2026. |
| Jun 18 | IR materials update | Positive | -5.7% | Release of 2026 royalty asset handbook and new corporate website. |
| Jun 17 | Index inclusions | Positive | -0.5% | Expected addition to Russell 3000, Russell 2000 and S&P/TSX Global Gold. |
| Jun 11 | Share repurchase plan | Positive | +3.4% | Normal Course Issuer Bid to repurchase up to 3,222,537 shares. |
| May 28 | AGM voting results | Neutral | +1.0% | All AGM resolutions passed, including director elections and omnibus plan. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent news has produced mixed reactions, with shareholder-return actions like buybacks and dividends generally aligning with modest positive price moves while some ostensibly positive news, such as index inclusions, saw mild downside.
Key Terms
net smelter return financial
nsr financial
heap leach technical
electrowinning technical
qualified person regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Denver, Colorado--(Newsfile Corp. - July 15, 2026) - Elemental Royalty Corporation (NASDAQ: ELE) (TSX: ELE) ("Elemental" or the "Company") is pleased to announce that it has entered into a strategic US
The Transaction includes the acquisition of both equity in Quilla, and an additional perpetual, uncapped
Highlights
- Existing Producing Royalty: Elemental has agreed a strategic US
$25 million investment package with Quilla to expand its existing royalty exposure to the Chapi copper project and support Quilla's next phase of growth - Increases Exposure to Project: Elemental acquired an additional perpetual, uncapped
1.0% NSR royalty over Quilla's Pampa Negra and Candelaria concessions, increasing Elemental's royalty interest to a total of3.0% NSR - Expansion Plans underway: Pampa Negra and Candelaria will be important contributors to Quilla's future expansion of Chapi from 10,000 tonnes per annum to 30,000 tonnes per annum of copper cathode production
- Experienced team with track record of delivery: Quilla's management team have an established history in Peru, including as senior executives at Rio Alto, Milpo, Buenaventura, and the Antamina mine.
Elemental Chief Executive Officer, David M. Cole, commented: "This transaction moves Chapi into a top ten royalty for Elemental by increasing our exposure to Quilla's Phase 2 expansion at Pampa Negra and Candelaria following the recent successful commissioning of the Chapi mine. The management team's proven track record of operating in Peru sets them up for continued growth, while Chapi is strategically located within the Southern Copper Belt alongside mines operated by Freeport-McMoRan, Buenaventura, Anglo American, and Southern Copper. We are very pleased to enhance our royalty on the project and simultaneously become a Quilla shareholder as they move toward listing on a public Exchange."
Existing Chapi Royalty
In February 2025, EMX Royalty Corporation ("EMX") acquired a
Elemental acquired EMX in November 2025.
Figure 1: Existing and additional royalty Area of Interest over the Chapi Copper Project, Peru
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8358/305258_794f22f6f40e2996_001full.jpg
Transaction Details
Under the terms of the transaction, Elemental provided aggregate consideration of US
Elemental acquired an additional
As part of the same transaction package, Elemental subscribed for shares in the company, representing approximately
Elemental funded the Transaction from cash on hand. Proceeds from the Transaction are to be used by Quilla to fast-track exploration as well as permitting and engineering work related to the planned expansion.
Background on Quilla
Quilla is a private Canadian company that, in December 2024, acquired MPC and the associated Chapi licence areas. Quilla was founded by a select group of shareholders, including Victor Gobitz, looking to rapidly build an intermediate-sized base metals company. Mr. Gobitz is a senior mining executive with extensive recent leadership experience at two of Peru's most prominent mining companies. Prior to joining Quilla, he served as President and General Manager of the world-class Antamina mine, following his tenure as President and Chief Executive Officer of Compañía de Minas Buenaventura.
The Chapi Copper Project
Chapi is a former producing copper project that restarted production in Q1 2026 (see announcement dated March 2, 2026).
The Chapi Mine is located in the prolific Southern Peru porphyry copper belt across the Moquegua and Arequipa Departments, which host large scale operations including Southern Copper's Toquepala, Anglo American's Quellaveco Project, and Freeport-McMoRans's majority owned Cerro Verde mine. The asset sits at an elevation of approximately 2,750 meters and has ready access approximately 50 kilometers south-southeast from the city of Arequipa. The mine, which was in operation from 2006-2012, reached maximum production levels of 8,500 tonnes per annum.
The historic Chapi Mine is comprised of two principal open pits, underground workings, a crushing and agglomeration circuit, heap leach pads, a solvent extraction plant, an electrowinning copper cathode plant, and related infrastructure including mine camp, office facilities, water supply, and power.
The restart and successful commissioning of the SX-EW plant in 2026 was achieved on time and budget, reflecting management's strong track record as operators and work has begun on Phase 2 expansion as well as fast tracking investment in exploration and ongoing investment to optimise operations.
Technical Disclosure and Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Michael Sheehan, a "Qualified Person" and employee of the Company as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
For further information contact:
| David M. Cole | info@elementalroyalty.com |
| CEO | |
| Tara Vivian-Neal | investor@elementalroyalty.com |
| Investor Relations |
www.elementalroyalty.com
Phone: +1 (604) 688-6390
(NASDAQ: ELE) (TSX: ELE) (ISIN: CA28620K1066) (CUSIP: 28620K106)
About Elemental Royalty Corporation
Elemental is a new mid-tier, gold-focused streaming and royalty company with a globally diversified portfolio of 18 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 trades on Nasdaq and on the Toronto Stock Exchange under the ticker Symbol "ELE".
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities laws. Forward-looking statements include, but are not limited to, statements regarding the completion of the Transaction, the timing and satisfaction of closing conditions, the expected use of proceeds by Quilla, the expected benefits of the Transaction to Elemental and its shareholders, Chapi's expected ramp-up and expansion plans, future production levels, expected royalty revenue, potential exploration upside, Quilla's potential IPO, copper market conditions and future opportunities for collaboration with Quilla and Hartree.
Forward-looking statements are based on assumptions that management believes to be reasonable as of the date of this news release, including assumptions regarding the receipt of required approvals, the accuracy of technical and operating information provided by the operator, future copper prices, mine plans, permitting timelines, capital availability, operating performance, exploration results and the ability of Quilla and MPC to advance Chapi.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by such statements. These risks include, but are not limited to, the failure to complete the Transaction, changes in commodity prices, differences between projected and actual production, delays in ramp-up or expansion activities, permitting or regulatory delays, operational challenges, resource and reserve uncertainty, political and jurisdictional risks, title and royalty enforceability risks, foreign exchange fluctuations, capital markets conditions and the other risk factors described in Elemental's public disclosure documents filed on SEDAR+ and EDGAR.
Readers should not place undue reliance on forward-looking statements. Elemental undertakes no obligation to update forward-looking statements except as required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305258