Fred Bell, CEO of Elemental Altus Royalties (TSX.V:ELE) (OTCQX:ELEMF), joins me to unpack the transformative news announced on June 12^th, where Tether Investments has just positioned as their largest strategic shareholder and cornerstone investor.  We discuss what this deal means for the precious metals and royalty sector where a crypto company can deploy such large sums of capital, and more importantly what it means for future deal flow and acquisitions for Elemental Altus Royalties.

Tether completed the acquisition of 78,421,780 common shares of Elemental Altus from La Mancha Investments S.a.r.l. at a price of C$1.55 per share, representing approximately 31.9% of the issued and outstanding common shares. When combined with the 4,360,511 shares already owned by Tether, Tether will now own an aggregate of 82,782,291 common shares, representing approximately 33.7% of the issued and outstanding shares in the Company.

Tether has further announced that it has entered into an option agreement with AlphaStream Limited and its wholly-owned subsidiary Alpha 1 SPV Limited pursuant to which Alpha 1 granted Tether the option to acquire, subject to certain conditions, an aggregate of 34,444,580 common shares owned by Alpha 1. On exercise of this option, Tether would own 117,226,871 common shares, representing approximately 47.7% of the issued and outstanding common shares.

We also touched on the news out on June 24th where Gleason & Sons LLC announced it had acquired nearly one million common shares of Elemental Altus Royalties via ongoing open market purchases. The rationale from Stefan Gleason was that the Company has paid off all debt, booked its most profitable quarter ever in Q1, and streamlined its governance structure.

Fred and I discussed the rationale behind Tether positioning both dollars and gold in their 2 stablecoins, and that Elemental Altus was them positioning using their Teather Investments vehicle for longer-term appreciation, and that they were very keen on the lower risks and high revenue per employee ratio of royalty companies for acquiring more exposure to future gold equivalent ounces of production.  The mandate that they reiterated to the management team of Element Altus Royalties was to keep growing the business in a responsible and efficient manner.

We spent the balance of the discussion talking about what this means for future deal flow and acquisitions.  Fred highlighted the size and scale of potential future deals with their already strong balance sheet, cash on hand and free cashflow generation on tap for this year, and their revolving credit facility, giving them upwards of $80 million in funding for deals moving forward; before Tether even got involved.

If you have any follow up questions for Fred regarding Elemental Altus Royalties, then please email them to me at Shad@kereport.com.

• In full disclosure, Shad is a shareholder of Elemental Altus Royalties at the time of this recording, and may choose to buy or sell shares at any time.

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