Royalty Generation

What is a Mineral Royalty and Why Is It Important?

Net Smelter Return (NSR) is the net revenue that a royalty owner receives from the sale of mine product from the area which that royalty overlies, less transportation and refining costs. The percentage of the NSR refers to the portion of product a mine operator is obligated to pay to the owner of the royalty. The holder of a royalty is not responsible for any of the costs of developing the mine nor for the production of the ore, in essence, it’s a risk-free ride. This is important as it gives an opportunity for prospectors and exploration companies to mainain exposure to the vast potential of mineral production on a property to which they once owned the mineral rights to but did not have the capacity to develop into a mine. An umpire is often employed to keep track of these obligations.

Eagle Plains' Long-Term Exposure to Mineral Discovery

Since its formation in 1992, Eagle Plains Resources has assembled a large portfolio of mineral exploration royalties (>70) as a result of decades of project deal-flow. It has secured royalty interests over a wide range of commodities in Western Canada located in areas of active mining, advanced development and exploration. Most of these are in the form of a net smelter royalty (NSR).

How Eagle Plains Realized Pre-Production Royalty Value

While Eagle Plains has held many royalty interests for decades, management believed that their true value was not reflected within the diverse holdings of Eagle Plains and this would be more identifiable as a separate company. To unlock this value and make these available for acquisition, many of these royalties were transferred to Eagle Royalties Ltd., which was spun-out as a separate company in May 2023 on a 1 ER for 3 EPL share basis. Eagle Royalties was then acquired by Summit Royalties in November 2025 via an RTO process which resulted in a 1 Summit Royalties for 5 Eagle Royalties share transaction. Summit Royalties trades on the TSX-V Exchange with the trading symbol “SUM”.

Eagle Plains continues to organically generate royalties through deal-flow; the acquisition of new projects and the selling or optioning these to other companies. See Eagle Plains Royalty Portfolio