Elemental Royalty Options Three Exploration Licenses in Serbia to BHP

Core Viewpoint - Elemental Royalty Corporation has entered into a definitive option and earn-in agreement with BHP Group Limited for three exploration licenses in the Bor Mining District of Serbia, allowing BHP to acquire Magma Resources doo in exchange for cash payments and work commitments while Elemental retains a 2% NSR royalty on the projects [1][3][4] Group 1: Agreement Details - The agreement allows BHP to acquire a 100% interest in Magma and the projects by making an initial payment of $200,000 after six months, followed by annual payments of $200,000 until the earn-in is complete, and completing $5,000,000 in exploration expenditures within five years [3] - Upon exercising the option, Elemental will retain a 2% NSR royalty interest on each project, with BHP having the option to buy back up to 0.5% of the royalty in increments of 0.25% for $5,000,000 each before the eighth and eleventh anniversaries of the agreement [4] Group 2: Project Overview - The Bor Mining District is a significant copper producer in Europe, with Elemental's projects strategically located along the trend of Zijin Mining's operations, including the Čukaru Peki copper-gold mine [2][5] - Elemental has acquired over 150 square kilometers of mineral rights in the Bor Mining District, targeting both traditionally prospective Upper Cretaceous andesite units and deeper host rock packages where recent discoveries have been made [6] - The Lenovac North and South licenses cover the southern extension of the mineralization trend associated with Zijin's Brestovac license, while the Durlan Istok license is located near Zijin's Majdanpek mine [7][8]