Episode Details

Drew Clark, President and CEO of Summit Royalties Ltd. (TSX.V: SUM) (OTCQX: SUMMF), joins me to outline the transformational acquisition of Star Royalties Ltd. (TSXV: STRR, OTCQX: STRFF), which closed on July 3rd, 2026. The Arrangement materially expands Summit's portfolio with the addition of Star's royalty and streaming interests, including a 4% gold stream on Mining Americas Inc.'s (formerly Minera Alamos Inc.) Copperstone Project in Arizona.

The Copperstone gold stream provides Summit Royalties with exposure to a fully permitted Arizona gold development project where Mining Americas recently announced a positive pre-feasibility study and a formal construction decision. Based on the PFS results and current estimates, project construction is expected to take approximately one year, with initial production of 46,000 oz of gold per year anticipated by mid-2027.

Drew highlighted the upside potential to continue to grow the underground resources of the Copperstone Mine, considering Mining Americas having just announced a planned increase in the mill throughput from 600tpd to 1000tpd. Additionally, Mining Americas just announced there is a portion of resources outside of the PFS that exist in near-surface areas in proximity to the historic open pit excavations, and the Company believes there is potential for gold mineralization to be extracted via open pit mining methods.  This open pit was not even factored in the initial valuation process, and Drew mentioned it was now like getting a gold stream on 2 mines for the price of 1.  

Together with their existing portfolio, including a royalty on Jaguar Mining’s near-term producing Pitangui Project, where development is expected to commence in 2026 with first gold production targeted in 2027, this acquisition transaction of the gold stream on Copperstone strengthens the Company’s future revenue and cash flow growth.

With the closing of the Arrangement, Summit's portfolio now includes 48 royalties and streams, anchored with four producing assets, two assets expected to enter construction in 2026 which are targeted to begin production in 2027, and 42 additional royalties expected to add additional cash flow growth and optionality for years to come.  The portfolio is focused mostly on gold and silver, and spans across 3 core jurisdictions - Canada, USA, and Australia.  Summit is now the fastest growing company in the precious metals royalty sector; having completed their first royalty and stream transaction in May 2025, and just went public in the 2nd half of last year.  

Summit Royalties has continued to demonstrate its ability to identify and execute accretive transactions, and intends to build on that momentum with discipline, to become the next mid-tier streaming and royalty company.  Drew outlines that they are reviewing a few key term-sheets to keep making future actionable and accretive acquisitions to increase production and cash flow growth.

• Improved capital markets presence and trading liquidity, with supportive shareholder base.
• Pro forma Summit valued at a significant discount to peers on Price/NAV and Price/2027E cash flow per share (“CFPS”) basis.
• The Corporation currently has no debt and sufficient cash on-hand for use in future acquisitions, as well as being in dialogue with financial institutions for adding a potential revolving credit facility.

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

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

Click he