Elemental Royalty Options Three Exploration Licenses in Serbia to BHP

Rhea-AI Summary

Elemental Royalty (TSXV: ELE, NASDAQ: ELE) executed a definitive option and earn-in agreement granting BHP a path to acquire three exploration licenses in the Bor Mining District of Serbia held by Elemental's subsidiary Magma.

Key commercial terms: $200,000 initial payment at six months, $200,000 annual payments until earn-in, $5,000,000 cumulative exploration spend within five years, and retention by Elemental of a 2% NSR on each project. BHP may repurchase up to 0.5% NSR for two payments of $5,000,000 each (0.25% before year 8 and 0.25% before year 11). Annual advance royalties of $200,000 apply until commercial production.

Positive

• Elemental retains a 2% NSR on each project
• $5,000,000 committed exploration spend by BHP within five years
• BHP option brings a major global partner with deep geophysical capabilities
• Elemental adds exposure to >150 km2 of mineral rights in Bor District

Negative

• BHP can reduce Elemental's royalty to 1.5% NSR by paying a total of $10,000,000
• Near-term cash to Elemental is modest: $200,000 initial and $200,000 annual payments
• $5,000,000 exploration commitment is required within five years for BHP to earn 100% interest

News Market Reaction – ELE

-0.99%

1 alert

-0.99% News Effect

On the day this news was published, ELE declined 0.99%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Initial option payment: $200,000 Annual option payments: $200,000 per year Exploration expenditures: $5,000,000 +5 more

8 metrics

Initial option payment $200,000 Due six-month anniversary of BHP agreement

Annual option payments $200,000 per year Payable on each agreement anniversary until earn-in completion

Exploration expenditures $5,000,000 Cumulative exploration spend by BHP within five years

Retained NSR royalty 2% NSR Royalty on each Serbian project after BHP earn-in

Royalty buyback price $5,000,000 per 0.25% Two separate 0.25% NSR buyback options before 8th and 11th anniversaries

Advance royalty payments $200,000 per year Annual payments until commencement of commercial production

Mineral rights area Over 150 square kilometres Mineral rights along trend in Bor Mining District

Investor relations fee Up to C$9,000 per month Renmark IR services from Jan 1, 2026 for seven months and monthly thereafter

Market Reality Check

Price: $23.17 Vol: Volume 142,279 is 0.73x t...

normal vol

$23.17 Last Close

Volume Volume 142,279 is 0.73x the 20-day average of 194,379. normal

Technical Price 20.15 is flagged as trading above the 200-day MA at 2.84.

Peers on Argus

No peers with momentum or same-day headlines were provided, suggesting a stock-s...

No peers with momentum or same-day headlines were provided, suggesting a stock-specific move based on this news.

Historical Context

3 past events · Latest: Jan 09 (Neutral)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Jan 09	Compensation grants	Neutral	+1.8%	Grant of options, RSUs and DSUs under equity incentive and director plans.
Dec 04	Project option deal	Positive	-2.1%	Option with First Quantum on Hachita copper-gold project with earn-in terms.
Nov 26	Royalty acquisition	Positive	+10.4%	Completion of A$80M Laverton royalty acquisition over key gold projects.

Pattern Detected

Two of the last three news events saw price moves that aligned with the generally constructive nature of the announcements, with one divergence on a project option deal.

Recent Company History

Over recent months, Elemental reported several royalty- and option-focused developments. On Nov 26, 2025 it completed a major Laverton royalty acquisition for A$80 million, with the stock rising afterward. On Dec 4, 2025 it executed an option agreement on the Hachita project, but shares fell despite positive commercial terms. A Jan 9, 2026 grant of options, RSUs and DSUs was followed by a modest gain. Today’s Serbian royalty option with BHP continues this royalty-portfolio build-and-partner strategy.

Market Pulse Summary

This announcement highlights Elemental’s strategy of partnering with majors while retaining royaltie...

Analysis

This announcement highlights Elemental’s strategy of partnering with majors while retaining royalties, as shown by the 2% NSR on the Serbian projects and BHP-funded exploration of up to $5,000,000. Combined with prior royalty acquisitions and option deals, the news adds scale and diversification to its portfolio. Investors may watch progress on work commitments, royalty buyback elections at $5,000,000 per 0.25%, and the impact of new investor relations efforts costing up to C$9,000 per month.

Key Terms

nsr royalty, earn-in agreement, porphyry, epithermal, +2 more

6 terms

nsr royalty financial

"Elemental will retain 2% NSR royalties on the projects as well as other"

A net smelter return (NSR) royalty is a payment to a rights holder equal to a fixed percentage of the money a mine actually receives from selling refined metal, after the costs of turning ore into a saleable product are taken out. Think of it like a toll collected on each shipment after it’s been cleaned and sold. For investors, NSR royalties matter because they create a steady revenue stream with lower operational risk for the royalty holder, while reducing the owner-operator’s share of project cash flow and affecting project valuation.

earn-in agreement financial

"execution of a definitive option and earn-in agreement (the "Agreement") covering"

An earn-in agreement is a contract where one company gradually gains ownership in a project or business by meeting agreed milestones, usually through funding, completing work, or making payments. It matters to investors because it spreads risk and cost over time, like paying for a car in installments only if it runs as promised, and signals future ownership shifts and potential dilution or value creation for current shareholders.

porphyry technical

"cluster of porphyry Cu-Au, high-sulfidation epithermal and skarn systems"

A porphyry is a type of large, underground mineral deposit that contains valuable metals such as copper, gold, or molybdenum, often spread over a wide area. Think of it as a giant underground treasure chest, where the metals are embedded in rock formations. These deposits are important to investors because they can be the source of significant resource extraction projects with the potential for substantial economic returns.

epithermal technical

"cluster of porphyry Cu-Au, high-sulfidation epithermal and skarn systems"

Epithermal describes a type of mineral deposit formed when hot fluids near the Earth’s surface deposit metals such as gold and silver into cracks and porous rock, often creating concentrated ‘veins’ or pockets. For investors, epithermal deposits matter because they can host high-grade, easily accessible ore that may lower extraction costs and shorten the time from discovery to production, affecting project value and exploration risk.

skarn technical

"porphyry Cu-Au, high-sulfidation epithermal and skarn systems (including Bor"

A skarn is a type of rock that forms when hot magma interacts with surrounding rocks, causing chemical changes and the creation of mineral-rich deposits. For investors, skarns can indicate areas where valuable metals or minerals might be concentrated, making them important in the search for natural resources and potential mining opportunities. Recognizing skarns helps in assessing the potential value of land or mineral rights.

advanced royalty payments financial

"BHP will also make annual advance royalty payments of $200,000 to the Company"

An advanced royalty payment is a lump sum a company receives upfront in exchange for a portion of future sales or revenue from a product or asset, similar to getting a loan that is repaid through a slice of future earnings. It matters to investors because it boosts near-term cash flow and can fund growth, but it reduces future revenue and can shift risk to buyers; understanding this trade-off affects valuation, earnings forecasts, and perceived financial strength.

AI-generated analysis. Not financial advice.

Vancouver, British Columbia--(Newsfile Corp. - January 16, 2026) - Elemental Royalty Corporation (TSXV: ELE) (NASDAQ: ELE) ("Elemental" or the "Company") is pleased to announce the execution of a definitive option and earn-in agreement (the "Agreement") covering three exploration licenses in the Bor Mining District of Serbia to a wholly owned subsidiary of BHP Group Limited ("BHP"). The three exploration-stage projects are currently held by Elemental's wholly owned Serbian subsidiary Magma Resources doo ("Magma") and BHP will have the option to acquire Magma in exchange for cash payments and by satisfying work commitments. Elemental will retain 2% NSR royalties on the projects as well as other considerations (see discussion of Commercial Terms below).

The Projects nicely complement Elemental's other royalty interests in the Bor District, which include the Brestovac, Brestovac West, and Jasikovo East-Durlan Potok properties (see Figure 1). Brestovac is one of Elemental's flagship royalties, covering Zijin Mining Group Co., Ltd's producing Čukaru Peki copper-gold mine and recently discovered Malka Golaja copper-gold deposit. Zijin has been rapidly expanding its Čukaru Peki operations, increasing capacity at its current mill while continuing to add infrastructure for the development of the "Lower Zone" porphyry copper-gold deposit. Zijin's published mineral resources and reserves for Čukaru Peki have also continued to grow rapidly, as shown in Zijin's recent annual reports. The Lenovac projects, included in the BHP Agreement, cover the extension of the geologic trend that hosts the Čukaru Peki and Malka Golaja copper-gold deposits to the south.

Commercial Terms Overview. (all terms in USD)
Pursuant to the Agreement, BHP can acquire and retain a 100% interest in Magma and the Projects by satisfying each of the following conditions: (a) making a payment of $200,000 to the Company on the six-month anniversary of the Agreement, (b) annual payments of $200,000 to the Company on every anniversary of the Agreement until the earn-in is complete, and (c) completing $5,000,000 in cumulative exploration expenditures on the Projects within five years.

Upon BHP's option exercise and earn-in, Elemental will retain a 2% NSR royalty interest on each Project. BHP may buy back up to a total of half a percent (0.5%) of the royalty in quarter percent (0.25%) increments; 0.25% can be purchased for $5,000,000 before the eighth anniversary of the agreement and 0.25% can be purchased for $5,000,000 before the 11^th anniversary of the agreement. BHP will also make annual advance royalty payments of $200,000 to the Company until the commencement of commercial production.

Overview of the Projects.
The Bor Mining District in eastern Serbia has been one of Europe's largest copper producers for over a century, where historic and current mining operations have been developed within a cluster of porphyry Cu-Au, high-sulfidation epithermal and skarn systems (including Bor, Veliki Krivelj, Majdanpek and Čukaru Peki; see Figure 1). The Elemental projects (the "Projects") were originally acquired in 2023 and 2024 and are positioned along trend of Zijin Mining's Bor and Čukaru Peki operations. Although there are still near-surface deposits being identified in the area, several recent discoveries have been made at relatively deep levels (such as Zijin's Čukaru Peki and Dundee Precious Metals' Čoka Rakita deposits) and require deep drilling. BHP's deep-sensing geophysical capabilities and existing regional interest make them an ideal exploration partner for the Projects.

Elemental has acquired over 150 square kilometres of mineral rights along trend of the major copper and gold deposits within the Bor Mining District (see Figure 1). Previous exploration in the Bor District has typically targeted Upper Cretaceous andesite units, which host the majority of the epithermal and porphyry systems at the Bor Copper Complex and Čukaru Peki mine. However, new discoveries such as Dundee Precious Metals' Čoka Rakita skarn deposit highlights that the different geologic settings and older Jurassic and Paleozoic host rocks are also prospective for additional discoveries. The Elemental Projects include both the traditionally prospective Upper Cretaceous andesite units of the Timok Magmatic Complex, as well as deeper host rock packages where several recent discoveries have been made.

The Lenovac North and South licenses lie directly south of the Zijin's Brestovac license, which hosts the Čukaru Peki and the recently discovered Malka Golaja copper-gold deposits. Elemental's Lenovac licenses cover the southern extension of this trend where a regional fault displaces the trend of mineralization and favorable host rocks to the southwest. The licenses are largely comprised of prospective Cretaceous volcanic and sedimentary units with some areas of Miocene cover.

The Durlan Istok license is located to the southeast of Zijin's Majdanpek porphyry copper-gold mine and east of Čoka Marin, a high-grade polymetallic volcanogenic/epithermal deposit. The Durlan Istok license contains the stratigraphic sections that hosts Čoka Marin and the Čoka Rakita skarn further to the southwest.

Comments on adjacent or nearby Districts, Mines, and Deposits.
The districts, mines, and deposits discussed in this news release provide context for Elemental's projects, which occur in similar geologic settings, but this is not necessarily indicative that the Company's projects host similar tonnages or grades of mineralization.

North American Investor Relations
Elemental has retained the services of Renmark Financial Communications Inc. to handle its investor relations activities in North America. In consideration of the services to be provided, the monthly fees incurred by Elemental will be a cash consideration of up to C$9,000, starting January 1, 2026, for a period of seven months ending on July 31, 2026, and monthly thereafter. Renmark Financial Communications does not have any interest, directly or indirectly, in Elemental or its securities, or any right or intent to acquire such an interest.

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

 

www.elementalroyalty.com

(TSXV: ELE) (NASDAQ: ELE) | ISIN: CA28620K1066 | CUSIP: 28620K

About Elemental Royalty Corporation.
Elemental Royalty 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 under the ticker symbol "ELE", and on the NASDAQ Stock Market under the ticker symbol "ELE".

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Qualified Person
Dr. Eric P. Jensen, 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 include, but are not limited to, the Company's ability to deliver a materially increased revenue profile with a lower cost of capital, the future growth, development and focus of the Company, and the acquisition of new royalties and streams. 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 Royalty for the year ended December 31, 2024. Elemental Royalty undertakes no obligation to update forward-looking statements and information except as required by applicable law. Such forward-looking statements and information represents 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.

Figure 1. Elemental Royalty interests and projects in the Bor Mining District of Serbia.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8358/280566_3dabfe0184c6bbcd_001full.jpg

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280566

FAQ

What did Elemental (ELE) agree with BHP on January 16, 2026 regarding Serbian projects?

Elemental granted BHP an option and earn-in to acquire three exploration licenses via payments and a $5,000,000 exploration commitment within five years.

How much royalty will Elemental (ELE) retain on the Bor District projects after BHP earns in?

Elemental will retain a 2% NSR on each project, with BHP able to buy up to 0.5% NSR for two payments of $5,000,000.

What cash payments does Elemental (ELE) receive under the BHP agreement and when?

BHP will pay $200,000 at six months, then $200,000 annually until earn-in, plus annual advance royalties of $200,000 until production.

What is the exploration spending requirement in the BHP option for Elemental (ELE) projects?

BHP must complete $5,000,000 in cumulative exploration expenditures on the projects within five years to earn 100%.

How do these Elemental (ELE) licenses relate to existing mines in the Bor District?

The licenses lie along trend with major deposits including Zijin's Čukaru Peki and recent discoveries, providing district-scale exploration potential.

Can BHP reduce Elemental's future royalty income and how much would it cost?

Yes; BHP may purchase 0.25% of the NSR for $5,000,000 before year 8 and another 0.25% for $5,000,000 before year 11, lowering the NSR up to 0.5%.