Evolve Royalties (EVR.CN) entered into a binding letter of intent with a private royalty holder, pursuant to which the company will buy from the royalty holder a 0.5% net smelter returns royalty on production from claims comprising the Sunnyside project operated by Barksdale Resources Corp. (BRO.V) in Arizona, United States, for US$2.25 million, payable in a mix of cash and common shares of the company, it said on Thursday.
The Sunnyside Royalty represents an opportunity for Evolve to buy copper exploration optionality at "modest cost" in an established North American mining jurisdiction, it said. The deal is expected to close in the second quarter of 2026.
"What makes Sunnyside particularly attractive is the multiplicity of geological targets on the royalty ground; from the near surface high-grade copper mineralization the operator is currently drilling at the Triple C target, to the potential for extensions of South32's neighbouring Taylor and Peake deposits onto Sunnyside," said Evolve Royalties Chief Executive Joseph de la Plante. "As Barksdale continues to drill and expand its understanding of these targets, Evolve will participate in that upside and exploration success through its royalty."
Total consideration of $2.25 million is to be paid in two instalments, it said. The first will be $0.5 million in cash and common shares having an aggregate value of $0.75 million payable on closing, and the second will be $0.5 million in cash and common shares having an aggregate value of $0.5 million payable in the first quarter of 2027.
Evolve shares closed up 1.2% to $3.41 on Wednesday on the Canadian Securities Exchange.