Hachita Copper-Gold Project Sale Agreement

Elemental Advances Hachita Copper-Gold Project Sale Through New Option Agreement

The Hachita Copper-Gold Project Sale moves forward as Elemental Royalty’s subsidiary Bronco Creek Exploration signs an option agreement with First Quantum Minerals. The deal targets the underexplored Sylvanite mining district in south-western New Mexico, a region with strong Laramide porphyry copper-gold potential. The agreement supports Elemental’s growth strategy and strengthens First Quantum’s U.S. exploration footprint.

Elemental reports that the option terms include an execution payment, staged option payments and strict work commitments. The total execution and option payments exceed $800,000 over five years. Meanwhile, First Quantum can earn a full 100% interest by funding $6 million in exploration during the option period. As a result, the agreement aligns incentives for accelerated project development.

Elemental secured the Hachita project by staking open ground after identifying untested targets in the Sylvanite district. The company highlights the region’s strong geologic potential across the eastern Laramide porphyry belt. CEO David M. Cole notes that the transaction reflects Elemental’s ability to find quality assets and attract top-tier partners.

Financial Terms Strengthen the Hachita Copper-Gold Project Sale Structure

The Hachita Copper-Gold Project Sale includes long-term royalty and milestone structures that benefit Elemental. Upon option exercise, Elemental will retain a 3% net smelter royalty, with 1% available for buyback at $5 million. First Quantum will also make annual $100,000 advanced royalty payments until a feasibility study or development decision.

Additionally, milestone payments include $500,000 upon completion of a feasibility study and $2.5 million once First Quantum reaches a development decision. These payments ensure ongoing value creation as the project advances.

Strategic Value of the Hachita Copper-Gold Project

The district hosts Laramide porphyry copper-gold and skarn mineralisation with significant exploration upside. The project’s location, about 95km southeast of Lordsburg, offers access to established mining infrastructure. Elemental and First Quantum see strong potential for resource growth under a structured exploration campaign.

SuperMetalPrice Commentary:

The Hachita agreement highlights a growing trend in North American copper-gold exploration. Major producers continue to secure early-stage assets to support long-term resource pipelines, while royalty companies leverage technical expertise to generate new projects. The structured earn-in terms limit risk for First Quantum and guarantee stable returns for Elemental. If exploration success follows, Hachita could emerge as a meaningful copper-gold asset in the Laramide belt, a region already known for world-class systems.