Royalties Inc. Secures Victory in Appellate Court, Confirming Royalty Rights and Capstone Ordered to Pay Legal Costs

Core Viewpoint - Royalties Inc. has successfully upheld its royalty rights through a favorable ruling from the Appellate Court in Mexico, confirming its entitlement to royalties from a 2002 mining contract and ordering Capstone to pay legal costs [1][3]. Legal Ruling Summary - The Appellate Court confirmed the first-instance ruling from June 16, 2025, which recognized Minera Portree's rights to royalties and declared the 2019 transfer act to Capstone as nonexistent [6]. - The court dismissed the appeals from Raúl González Anaya, Capstone Gold S.A. de C.V., and Gerardo González García, stating that their arguments did not effectively challenge the core issues of royalty entitlement [3][6]. - The ruling mandates that the defendants cover all procedural expenses and costs from both court instances, as per Article 1084 of the Federal Commercial Code of Mexico [3][6]. Company Background - Royalties Inc. holds an 88% ownership stake in Minera Portree de Zacatecas S.A. de C.V. (MPZ), which has a claim to a 2% net smelter royalty established in 2002 on five mining concessions known as the 'Portree claims' [11]. - Capstone Copper Corp. has been mining in the area since 2010 and improperly assigned the royalty to itself without proper authorization from MPZ [11]. - The company also has a 4.9% stake in Music Royalties Inc., which has generated over $12 million in dividends since 2019 [11].