Ivanhoe Electric (US:IE) Newsfile·2025-11-17 12:00Core Insights - Elemental Royalty Corporation has executed four option agreements with Ivanhoe Electric for projects in Arizona, focusing on porphyry copper mineralization [1][2][4] - The agreements will provide Elemental with execution payments, option payments, and work commitments, along with a 2.5% net smelter return royalty upon earn-in [2][5] Project Details - The projects are located in the Laramide porphyry copper belt, known for its mineral wealth, and include Dragon's Tail, Copper King, Sleeping Beauty-Jasper Canyon, and Lomitas Negras [2][4] - Dragon's Tail is near the Resolution copper deposit and targets concealed porphyry copper and skarn mineralization [6][8] - Copper King, adjacent to Dragon's Tail, also targets porphyry copper and related skarn mineralization, with previous drilling indicating high-temperature alteration [9] - Sleeping Beauty-Jasper Canyon targets mineralization from the Pinto Valley-Copper Cities porphyry system, with potential for higher grades due to geological displacement [10] - Lomitas Negras shares geological features with the San Manuel-Kalamazoo porphyry copper deposit and may relate to an undiscovered porphyry copper system [11] Financial Terms - Ivanhoe Electric can earn a 100% interest in the projects over an eight-year period by making total payments of US$240,000 in execution payments, up to US$2,325,000 in option payments, and cumulative exploration expenditures of up to US$10,800,000 [4][5] - Upon option exercise, Elemental retains a 2.5% NSR royalty, with a buyback option for 0.5% of the royalty at US$4,000,000 per project [5] Strategic Implications - The agreements exemplify Elemental's royalty generation business model, providing exploration projects to partners in exchange for royalty interests and cash flow [12] - The CEO of Elemental expressed confidence in the partnership with Ivanhoe Electric, highlighting the potential for exploration-driven growth in the Laramide belt [6]