Elemental Altus Completes Acquisition of Arizona Sonoran's Cactus Project to Strengthen Copper Royalty Portfolio

About Elemental Altus Royalties

Elemental Altus Royalties Corp. (TSX-V: ELE, OTCQX: ELEMF) is an income-generating precious metals royalty company with 10 producing royalties and a diversified portfolio of pre-production and discovery stage assets. The company is focused on acquiring uncapped royalties and streams over producing, or near-producing, mines operated by established counterparties, as well as generating royalties on new discoveries. Elemental Altus aims to build a global gold royalty company, offering investors superior exposure to gold with reduced risk and a strong growth profile.

The company has announced it has completed its royalty acquisition of Arizona Sonoran's Cactus copper project.

Key Points

• Elemental Altus acquired a 0.68% net smelter return royalty on Arizona Sonoran Copper Company's Cactus Project for $10 million.
• The Cactus Project is a copper development project in Arizona with a prefeasibility study planned for Q1 2024.
• Elemental Altus funded the acquisition through issuance of 11.1 million new shares at C$1.20 per share.
• The deal adds copper exposure in a top mining jurisdiction and strengthens Elemental Altus' advanced development royalty portfolio.

Acquisition Bolsters Royalty Pipeline

On September 11th, Elemental Altus announced the acquisition of two royalties from RCF Opportunities Fund, including a 0.68% NSR royalty on Arizona Sonoran Copper's Cactus Project in Arizona. The company paid $10 million for the royalties, funded through issuance of 11.1 million shares priced at C$1.20.

The Cactus Project is a copper development project located in Arizona, one of the top mining jurisdictions globally. Project owner Arizona Sonoran is advancing the project rapidly, with a prefeasibility study due in Q1 next year and a definitive feasibility study slated for H2 2024.

For Elemental Altus, the deal provides copper exposure in a Tier 1 jurisdiction and adds a key development stage royalty to its portfolio. The project has near term catalysts, with studies expected over the next 18 months to move it closer to production.

Additional Portfolio Transactions

The Arizona Sonoran royalty acquisition is Elemental Altus' fifth transaction this year as the company continues to actively build out its royalty portfolio. Other key deals in 2023 include:

• Sale of the Diba Lakanfla gold project in Mali to Allied Gold, retaining a royalty interest. Allied plans to fast-track development and leverage existing infrastructure at the nearby Sadiola mine.
• Sale of projects in Egypt and Ethiopia to focus on royalty generation. The deals provide royalty exposure without additional expenditures.
• Acquisition of four royalties from Vox Royalty Corp. in January, including producing graphite and iron royalties.

In total, the company has completed eight transactions year-to-date, including five acquisitions to boost its royalty portfolio. The deals highlight Elemental Altus' strategy of continually growing its royalty exposure while minimizing expenditures.

Conclusion

The latest Arizona Sonoran copper royalty provides Elemental Altus with near-term development exposure in a Tier 1 mining jurisdiction. With a steady stream of deals in 2023, the company continues to execute on its plan of acquiring royalties and divesting assets to build a diversified royalty generator model.

For investors, Elemental Altus offers royalty exposure to producing assets providing cash flow, development stage royalties with anticipated near-term output, and exploration upside. The company's deal-focused strategy provides continuing opportunities to expand the royalty portfolio. Elemental Altus offers investors looking for precious and base metals royalty exposure a pipeline of producing, development, and exploration stage assets.