Press Release ⚠ 3
Elemental Royalty Announces US$290 Million Acquisition of Royalty and Streaming Portfolio, Strategic Divestment of Generation Business and Management Succession
Elemental Royalty (NASDAQ/TSX: ELE) announced a US$290 million acquisition of a five-asset stream and royalty portfolio from funds managed by Orion Mine Finance, including two 1% NSR royalties over Dakota Gold's Homestake District properties in South Dakota, home to the filer's flagship Richmond Hill project.
Consideration comprises US$200 million in cash and US$90 million in equity (4,289,053 Elemental shares, about 5.6% of shares outstanding), funded in part by an upsized US$250 million revolving credit facility from National Bank of Canada. Elemental also raised 2026 guidance to 19,500-22,000 GEOs with revenue of US$89.8-US$101.1 million expected at US$4,500/oz gold.
In parallel, Elemental agreed to divest its Generation Business to Carlin East for a cornerstone stake valued at US$8.5 million (~19.9%), cutting annual cash expenses by roughly US$6 million (~25%) and headcount by over 50%; CEO David M. Cole resigned effective immediately to lead Carlin East, with founder and COO Frederick Bell appointed CEO.
For Dakota Gold (NYSE American: DC), the transaction changes no economics - the royalties were acquired from Orion, not from Dakota Gold - with first production from Richmond Hill anticipated in 2029, making the deal mainly third-party validation of the Homestake District.
• 1mo ago