Elemental Royalty Grants BHP Option on Serbian Copper-Gold Exploration Licenses, Retains Royalties

Elemental Royalties ( (TSE:ELE) ) just unveiled an announcement.

Elemental Royalty Corporation has signed a definitive option and earn-in agreement granting a BHP subsidiary the right to acquire its Serbian unit, Magma Resources, which holds three exploration-stage licenses in the Bor Mining District. Under the deal, BHP can earn a 100% interest in the projects through staged cash payments and US$5 million in exploration spending over five years, while Elemental retains a 2% net smelter return royalty on each project, with limited buyback rights for BHP and ongoing advance royalty payments until commercial production. The licenses, including the Lenovac North and South projects that extend the trend hosting Zijin’s Čukaru Peki and Malka Golaja copper-gold deposits, expand Elemental’s royalty exposure over more than 150 square kilometres in one of Europe’s most prolific copper districts. By pairing its land position with BHP’s deep exploration capabilities, Elemental aims to unlock additional copper-gold discoveries at depth, reinforcing its strategic presence in the region and potentially enhancing long-term cash flow for shareholders through future royalty income.

The most recent analyst rating on (TSE:ELE) stock is a Hold with a C$30.00 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Spark’s Take on TSE:ELE Stock

According to Spark, TipRanks’ AI Analyst, TSE:ELE is a Neutral.

The score is supported by strong financial strength (notably zero debt) and improved TTM profitability, partially offset by thin/volatile free cash flow and a demanding valuation (high P/E with no dividend yield provided). Technicals are moderately positive but not strongly trending.

To see Spark’s full report on TSE:ELE stock, click here.

More about Elemental Royalties

Elemental Royalty Corporation is a precious metals royalty and streaming company listed on the TSX Venture Exchange and Nasdaq, focused on acquiring and managing royalties on copper and gold projects. Its portfolio includes key interests in Serbia’s Bor Mining District, notably on Zijin Mining’s producing Čukaru Peki copper-gold mine and associated deposits, positioning the company to benefit from ongoing regional production growth and new discoveries along a highly prospective mineral trend.

Average Trading Volume: 51,378

Technical Sentiment Signal: Hold

Current Market Cap: C$1.75B

For detailed information about ELE stock, go to TipRanks’ Stock Analysis page.