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.”