Elemental Altus Royalties – Transformative Transaction With Crypto Stablecoin Company Tether Investments, Coming In As The Largest Strategic Shareholder
Fred Bell, CEO of Elemental Altus Royalties (TSX.V:ELE) (OTCQX:ELEMF), joins me to unpack the transformative news announced on June 12th, 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.
Click here to view recent news on the Elemental Altus Royalties website
Thanks for sharing OOTB. Yes, that is another big gold acquisition by Zijin.
I’m surprised we aren’t seeing even more M&A than we are with these record high gold prices and based on where many company valuations still are at.
Always glad to share the news….
What I find disturbing is that China is still making all the right moves. They are the premier manufacturing country; and they control most of the critical minerals necessary to build a modern economy and they are very mining friendly. Meanwhile The West still engages in War and fiat currency printing backed by nothing. China builds infrastructure in continents like Africa and South America and then they can then turn around and say to Peru we have helped you now, we would like some mining concessions and that is how it is done.
China also owns a lot of agricultural land in The US and if America doesn’t play by their mandate, they bypass them and buy agricultural products from Canada, Brazil, Argentina, or Australia. Meanwhile they are working at vertical farming on a massive scale in their own country.
Soon China will control the financial World through The Shanghai Financial center. That will leave The US spinning its wheels with Taco Trump, and his tariffs. DT
Remember how Trump and Musk were going to audit Fort Knox with video surveillance, Musk is gone and not a peep is coming out of Washington about how much gold America owns. Smoke and Mirrors, Baby!
Meanwhile The Chinese keep stacking gold bullion and some of the estimates I have read are 40,000 tonnes of gold. The Chinese are tight lipped about their gold holdings for a different reason than America. China will announce their holdings when the time is right, and it will be to their advantage. DT
In 1932 The US had 24,000 tonnes of gold reserves, they had accumulated so much because they were the World’s manufacturing powerhouse. Remember this was during The Great Depression just before Roosevelts New Deal. The US wisely figured out at the time that holding so much gold in their country would be detrimental to The World economy, so they sold some to European countries notably France to spread the wealth around. At this time gold was $20 per ounce US.
Given what has been happening in The World it would not be unreasonable for China to be far and away the World’s largest holder of physical bullion. DT
MORE GOLD PLEASE……………… 🙂
By Rajasik Mukherjee
Reuters
June 29, 2025
China’s biggest gold and copper producer Zijin Mining said today it had agreed to buy one of the largest gold mines of Kazakhstan, the Raygorodok Gold Mine, for $1.2 billion.
Zijin said its unit Zijin Gold International and Jinha Mining, a subsidiary of Zijin Gold, had inked a deal to acquire the rights of RG Gold LLP and RG Processing LLP, the Kazakhstan-based gold mining firms that currently own and operate the Raygorodok gold mine. …