Elemental Royalty (TSX: ELE) has agreed to acquire a portfolio of five streams and royalties from funds managed by Orion Mine Finance for US$290 million, alongside plans to spin out its project generation business and a change at the top of the company.
The Orion package will be paid with US$200 million in cash and US$90 million in stock. The equity portion comprises 4,289,053 Elemental shares, or roughly 5.6% of the company’s outstanding share count.
Three of the five assets are already in production. The portfolio includes a 50% silver stream on i-80 Gold’s Ruby Hill Complex and Granite Creek properties in Nevada, a 5% gold stream on Mansa Resources’ Kouroussa mine in Guinea, and a 2.5% gross revenue royalty on Silverco Mining’s La Negra mine in Mexico.
Sponsored · McLaren Resources Inc.
Rounding out the deal are a 1% gold stream on Endura Mining’s Snowy River project in New Zealand, which is targeting first gold in December 2026, and a 1% net smelter return royalty covering Dakota Gold’s ground in South Dakota’s Homestake District.
Both streams carry step-downs. Ruby Hill falls to 10% after 2.5 million ounces of silver have been delivered, with 1.3 million ounces left before that threshold is reached. Kouroussa halves to 2.5% at the later of November 2037 or 39,800 ounces delivered, and Mansa holds a one-time right to buy back half the stream for US$22.5 million before November 2028.
Elemental expects Ruby Hill and Kouroussa to rank among its top five and top ten assets, respectively.
The cash portion will be funded through an expanded revolving credit facility with National Bank of Canada, which rises from US$150 million to US$250 million.
Sponsored · Selkirk Copper Mines
In parallel, Elemental has signed a non-binding agreement to sell its generation business to Carlin East Inc. In exchange, Elemental will receive Carlin East shares with a deemed value of US$8.5 million, expected to represent about 19.9% of the company after a concurrent financing. Elemental will also keep half of all production royalties arising from the transferred agreements.
The move cuts Elemental’s headcount by more than 50% and trims annual cash expenses by approximately US$6 million, or around 25% of projected spending.
David Cole has resigned as chief executive and director to become executive chair of Carlin East. Frederick Bell, Elemental’s founder and most recently its president and chief operating officer, steps back into the CEO role he held from 2017 to 2025.
“We believe that by separating the Generation Business at this point we can realise value from within Elemental’s existing portfolio while simultaneously reducing the Company’s cost base, capital requirements and simplifying the corporate structure,” said Bell.
Elemental also raised its 2026 sales guidance to between 19,500 and 22,000 gold equivalent ounces, including roughly 1,500 ounces from the Orion assets, with economic benefit accruing from August 1. Revenue is now forecast at US$89.8 million to US$101.1 million, assuming gold at US$4,500 per ounce.
The acquisition is expected to close in the fourth quarter of 2026, subject to Toronto Stock Exchange approval, with the Snowy River stream potentially slipping into the first quarter of 2027 pending New Zealand regulatory approval. The Carlin East divestment is targeted for completion by October 31, 2026.
Elemental Royalty last traded at $30.45 on the TSX.
