Elemental Royalty Corporation (NASDAQ: ELE) announced its subsidiary Bronco Creek Exploration Inc. has entered into an exploration and option agreement with Robinson Holdings (USA) Ltd., a subsidiary of KGHM Polska Miedź S.A., for four porphyry copper projects in Nevada.

The agreement covers the Royston, Big E, Tango, and Whiskey projects located in Mineral and Nye Counties, Nevada. Under the terms, KGHM's subsidiary will pay Elemental execution payments totaling $315,000 and option payments up to $600,000 per project over a six-year period.

KGHM's subsidiary must spend $5 million in exploration expenditures per project to exercise its option and acquire 100% interest in each property. Upon option exercise, Elemental retains a 2% Net Smelter Return royalty on each project.

The agreement includes annual advance royalty payments starting at $50,000 per project, increasing by $10,000 annually until $1.75 million has been paid or commercial production begins. Additional milestone payments include $500,000 upon resource declaration, $750,000 upon completion of a preliminary economic assessment, and $1 million upon completion of a feasibility study.

The projects target porphyry copper systems in west-central Nevada. The Royston project is located 30 kilometers northwest of Tonopah and has undergone previous drilling that confirmed altered zones with anomalous base and precious metals. The Big E project sits adjacent to Royston and comprises a similar porphyry copper target.

The Tango project represents a pooled land package between Bronco Creek Exploration's claims and Great Western Mining Corporation's claims, with financial benefits split 70% to Elemental and 30% to Great Western. The Whiskey project is situated approximately 5 kilometers southwest of Tango.

KGHM operates copper and silver mines in Europe and the Americas. The information is based on a press release statement from Elemental Royalty Corporation.