Drew Clark, President and CEO of Summit Royalties Ltd. (TSX.V: SUM) (OTCQB: SUMMF), joins me to outline the transformational acquisition of Star Royalties and recent acquisition of a 1% NSR on the Saddle North Project, taking their portfolio up to 50 royalty partner projects, across 3 core jurisdictions being Canada, USA, and Australia; mostly focused on gold and silver.  Summit is a relatively new company having just gone public in the 2^nd half of last year, but is now the fastest growing company in the precious metals royalty sector. 

On March 16, 2026, Summit Royalties announced that they have entered into an arrangement agreement pursuant to which, Summit has agreed to acquire all of the issued and outstanding common shares and Star Royalties Ltd. (TSXV: STRR, OTCQX: STRFF).

Transaction Highlights and Strategic Rationale

• Immediate Scale & Quality
  • 50 royalties and streams
  • ~63% of net asset value (“NAV”) from assets in production or with committed timelines to production; and
  • Diversified revenue base with 4 assets currently in production, expected to increase to 6 by 2027.
  • Value accretive transaction on both a NAV per share and 2027E CFPS basis;
  • Significantly improved near-term cash flow profile with the addition of Copperstone and immediate revenue from Keysbrook;
  • Addition of a high-quality gold stream on Copperstone that is expected to have significant expansion and exploration upside, with multiple near-term catalysts expected throughout 2026 including a PFS (April 2026), a maiden open-pit resource (H2 2026), and the anticipated commencement of construction later in the year; and
  • Enhanced Tier-1 jurisdictional exposure.

• Industry-Leading GEOs Growth
  • ~47% GEOs CAGR expected over the next 3 years, which would be the highest among junior royalty and streaming companies based on analyst consensus estimates;
  • Visibility driven by existing development assets and growth from material assets with committed timelines to production; and
  • Additional upside from identified pipeline and from disciplined future acquisitions.
  •  

• Accretive & Cash Flow Enhancing
  • ~US$2M of identified annual cost synergies through the elimination of duplicate public company costs, personnel changes, and operational changes;
  • Copperstone and Pitangui expected to be in production by 2027, increasing estimated 2027 revenue to over US$15M at consensus metal prices; and
  • Small, agile team with minimal G&A funnels cash flow back into the business.

• Meaningful Re-Rate Potential
  • ~C$184M expected pro forma fully-diluted in-the-money market capitalization;
  • Improved capital markets presence and trading liquidity, with supportive shareholder base; and
  • Pro forma Summit valued at a significant discount to peers on Price/NAV and Price/2027E cash flow per share (“CFPS”) basis.

The Corporation intends to become the next mid-tier streaming and royalty company through future actionable and accretive acquisitions to increase production and cash flow growth. The Corporation currently has no debt and sufficient cash on-hand for use in future acquisitions.

Drew takes us through the growth on tap for 2026 and beyond at their now 4 producing royalties and streams.

• Madsen – 1% NSR Royalty focused on gold and operated by West Red Lake Gold Mines in Ontario, Canada
• Bomboré – 50% Silver Stream; operated by Orezone in Burkina Faso
• Zancudo – 0.5% NSR Royalty; operated by Denarius Metals in Colombia
• Keysbrook – 2% minerals royalty on a producing mineral sands mine in Western Australia

Additionally, they will retain exposure to the Green Star Royalties Ltd. joint venture between Star Royalties Ltd. (TSXV: STRR, OTCQX: STRFF), Agnico Eagle Mines Limited (TSX, NYSE: AEM) and Cenovus Energy Inc. (TSX, NYSE: CVE) that invests into North American carbon offset projects in nature-based solutions, renewable energies, as well as other green technologies.

Next we reviewed their key development royalties:

• Pitangu – $80/oz until 250 Koz produced – 1.5% NSR thereafter; operated by Jaguar Mining in Brazil and slated to go into production in 2027.
• AurMac – 0.5% – 2.0% NSR Royalty Coverage; operated by Banyan Gold in the Yukon, Canada

• On March 12, 2026, Summit Royalties Ltd. announced that it has entered into an agreement to acquire a 1.0% net smelter return (“NSR”) royalty on the Saddle North Deposit, owned by Newmont Corporation, for consideration of C$5 million paid in shares of Summit.

If you have any follow up questions for Drew about Summit Royalties, then please email them into me at Shad@kereport.com.

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