REG - ACG Metals Ltd. - Royalty Agreement amended

ACG MetalsAnnouncement

Thu 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251002:nRSB7285Ba&default-theme=true

RNS Number : 7285B  ACG Metals Limited  02 October 2025

2 October 2025

 

ACG Metals

ACG METALS LIMITED

("ACG" or the "Company")

ACG Amends Terms of Gediktepe Royalty Agreement to Support Transition from
Gold to Copper Production

ACG announces that the net smelter return royalty agreement dated 17 July 2019
(the "Royalty Agreement") originally entered into between Lidya Madencilik
Sanayi ve Ticaret A.Ş. (which assigned its interest to ACG Holdco 1 Limited),
Polimetal Madencilik Sanayi ve Ticaret A.Ş. ("Polimetal") and Alacer Gold
Madencilik A.Ş (which assigned its interest to EMX Royalty Corporation
("EMX")) in respect of production at the Gediktepe mine was amended and
restated (the "Amended Royalty Agreement") on 30 September 2025. The amendment
is the result of a consensual agreement with EMX on terms that are mutually
beneficial to all parties.

 

Under the terms of the Amended Royalty Agreement and related documents:

 

·    With effect from 1 January 2026, the terms of the oxide and sulphide
royalties have been simplified, with the oxide royalty percentage being
decreased from 10% to 2.25% and the sulphide royalty percentage being
increased from 2% to 2.25% on all sulphide production.

 

·    Each of ACG and Polimetal has been released from its obligations to
make certain milestone payments (the "Milestone Payments") linked to the
commencement of sulphide commercial production at the Gediktepe mine (in an
aggregate amount of US$ 6 million) to EMX in 2026.

 

The adjustment to the royalty terms will provide substantial benefits to the
group as it forges ahead with the transition from oxide to sulphide production
at the Gediktepe mine. In particular:

 

·    The amendments to the Royalty Agreement should result in a
significant reduction in all in sustaining costs (AISC) on the remaining oxide
ore produced at the Gediktepe mine from 2026.

 

·    The reduction in the high oxide royalty percentage and release of the
obligation to make the Milestone Payments should considerably strengthen the
group's short term cash flows and enable it to increase its cash buffer in
2026 while the Gediktepe mine transition is completed.

 

·    The royalty percentage applicable to any future oxide production
following a potential LOM extension at Gediktepe will decrease from 10% to
2.25%.

Patrick Henze, Chief Financial Officer of ACG said:

"We are very pleased to have completed the process of amending our royalty
arrangements with EMX and believe that the amended royalty terms leave us well
positioned to navigate the transition from oxide to sulphide production in the
near term. We are thankful to EMX for its constructive and collaborative
approach during this process and look forward to continuing our mutually
beneficial partnership."

- ENDS -

Inside information

 

The information contained within this announcement is considered by the
Company to constitute inside information as stipulated under the Market Abuse
Regulation (EU) No.596/2014 (as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018). On the publication of this
announcement via a Regulatory Information Service, such information is now
considered to be in the public domain.

 

Forward looking statements

 

This announcement may contain certain "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking statements").
Forward-looking statements are identified by their use of terms and phrases
such as "believe", "targets", "expects", "aim", "anticipate", "project",
"would", "could", "envisage", "estimate", "intend", "may", "plan", "will" or
the negative of those, variations or comparable expressions, including
references to assumptions. The forward-looking statements in this announcement
are based on current expectations and are subject to known and unknown risks
and uncertainties that could cause actual results, performance and
achievements to differ materially from any results, performance or
achievements expressed or implied by such forward-looking statements. Factors
that may cause actual results to differ materially from those expressed or
implied by such forward looking statements. These forward-looking statements
are based on numerous assumptions regarding the present and future business
strategies of the Group and the environment in which it is and will operate in
the future. All subsequent oral or written forward-looking statements
attributed to the Company or any persons acting on its behalf are expressly
qualified in their entirety by the cautionary statement above. Each
forward-looking statement speaks only as of the date of this announcement.
Except as required by applicable law, regulatory requirement, the UK Listing
Rules and the Disclosure Guidance and Transparency Rules, neither the Company
nor any other party intends to update or revise these forward-looking
statements, whether as a result of new information, future events or
otherwise.

 

The person responsible for the release of this information on behalf of the
Company is Artem Volynets, Chief Executive Officer.

 

For further information please contact:

 

Palatine

Communications Advisor

Conal Walsh / James Gilheany/ Kelsey Traynor/ Richard Seed

acg@palatine-media.com

 

Berenberg

Research Analysts

William Dalby +44 (0) 20 3753 3243

Richard Hatch +44 (0) 20 3753 3070

Cody Hayden +44 (0) 20 3753 3133

 

Joint Broker

Jennifer Lee / Natasha Ninkov

+44 (0) 20 3207 7800

 

Canaccord

Research Analysts

Tim Huff +44 (0) 20 7523 8374
 

 

Joint Broker

James Asensio / Charlie Hammond

+ 44 (0) 20 7523 80

 

 

About the Company

 

ACG Metals is a company with a vision to consolidate the copper industry
through a series of roll-up acquisitions, with best-in-class ESG and carbon
footprint characteristics.

 

In September 2024, ACG successfully completed the acquisition of the Gediktepe
Mine which is expected to transition to primary copper and zinc production
from 2026 and will target annual steady-state copper equivalent production of
20-25 kt. Gediktepe produced 55koz of AuEq in 2024.

 

ACG's team has extensive M&A experience built through decades spent at
blue-chip multinationals in the sector. The team brings a significant network
as well as a commitment to ESG principles and strong corporate governance.

 

For more information about ACG, please visit: www.acgmetals.com
(http://www.acgmetals.com)

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGRPKDBBBBDBOKK