Elemental Royalty (ELE) M&A Announcement summary

Deal rationale and strategic fit

• Merger creates a leading junior-to-mid-tier royalty company with a diversified global portfolio of over 200 royalties, filling a gap left by industry consolidation.

• Combined entity will have 16 producing royalties, projected to generate US $80 million in adjusted revenue in 2026, with 67% of revenue from precious metals.

• The merger leverages complementary management expertise, business models, and a shared growth philosophy.

• Tether's support as a cornerstone shareholder provides financial backing and strategic alignment.

• Enhanced trading liquidity and indexation demand are expected to help close the valuation gap with peers.

Financial terms and conditions

• Pro forma market cap is approximately US $933 million, with $50 million in cash and zero debt.

• Elemental Altus will acquire all EMX shares; EMX shareholders receive 0.2822 Elemental Altus shares per EMX share if consolidation is completed, or 2.822 if not.

• Tether Investments will purchase approximately 75 million Elemental Altus shares at C$1.84 per share for gross proceeds of US $100 million.

• Upon completion, Elemental Altus and former EMX shareholders will own approximately 51% and 49% of the merged company, respectively.

• The company will have an undrawn $50 million credit facility, with potential to expand to $150 million.

Synergies and expected cost savings

• Anticipated multimillion-dollar cost savings from corporate and operational synergies.

• The combination is expected to deliver immediate accretion to net asset value per share and near-term cash flow per share.

• Enhanced diversification and risk profile, with exposure to cornerstone assets in multiple regions and commodities.

• Integration expected to generate efficiencies in listing, corporate structure, and team deployment.

• Increased capital availability and discovery optionality across an expanded portfolio.