Elemental Royalty (ELE) Completes Merger, Lists on TSX, and Introduces Tokenized Gold Dividend

Gold royalty company Elemental Altus Royalties Corp. (TSXV: ELE, OTCQX: ELEMF) and EMX Royalty Corporation (NYSE American: EMX) completed a landmark merger on November 13, 2025, creating one of the most significant gold royalty entities in the junior mining sector. The transaction, approved by a British Columbia court under a plan of arrangement, simultaneously attracted a US$100 million investment from Tether Investments and culminated in February 2026 with a dividend announcement that made history: the first publicly listed gold company to offer shareholders the option of receiving dividends in tokenized gold.

The Merger: Elemental Altus + EMX Royalty

The merger was structured as a court-approved plan of arrangement under the Business Corporations Act (British Columbia), with a definitive agreement signed on September 4, 2025. Under the terms, EMX shareholders received 0.2822 Elemental Altus shares for each EMX share held (adjusted for a share consolidation applied to Elemental Altus).

Upon completion, former Elemental Altus shareholders owned approximately 51% of the combined entity, while former EMX shareholders held approximately 49% on a fully diluted basis. The resulting company retained the Elemental Altus name and branding, trading under the combined ticker ELE.

Tether Investments: US$100 Million Private Placement

Concurrent with the merger close, Elemental Royalty completed a US$100 million private placement with Tether Investments S.A. de C.V., the investment arm of Tether — the issuer of the world's largest stablecoin, USDT. Under the placement, 7,502,502 shares were issued at C$18.38 per share, making Tether Investments a significant shareholder in the newly combined company.

The strategic rationale for Tether's investment is multifaceted. Tether has been diversifying its balance sheet beyond US Treasury holdings, and gold royalty companies offer defensive exposure to gold prices without direct commodity custody risk. The investment also laid the groundwork for the February 2026 tokenized gold dividend announcement.

Financial Position & Valuation Metrics

The merged entity enters 2026 with a strong financial profile, supported by diversified royalty streams from Elemental Altus's and EMX's combined portfolio of gold, silver, and base metal royalties and streaming agreements across multiple jurisdictions.

Inaugural Dividend Policy & the Tether Gold Option

On February 17, 2026, Elemental Royalty announced its inaugural dividend policy: US$0.12 per common share annually, paid quarterly at US$0.03 per share. The first record date is set for the end of Q1 2026.

The defining feature of this dividend announcement — and what makes it historically significant — is the option for shareholders to receive their dividend in Tether Gold (XAUT), a tokenized gold product issued by Tether that represents direct ownership of one troy fine ounce of physical gold stored in Swiss vaults. This marks the first instance of any publicly listed gold company offering dividends in tokenized gold.

Tether Gold (XAUT) carries a market capitalization of approximately $2.5 billion as of February 2026. The dividend policy is supported by projected revenue and cash flow growth without compromising the company's ability to pursue accretive royalty acquisitions.

Why Tokenized Gold Dividends Matter

The introduction of XAUT-denominated dividends represents a convergence of traditional commodity finance and blockchain infrastructure that market observers have long anticipated but rarely seen executed at a public company level. For shareholders, it provides:

• Direct gold exposure — unlike cash dividends that are subject to currency risk, XAUT tracks physical gold prices directly.
• Custody simplicity — shareholders can hold tokenized gold in a crypto wallet without engaging a metals broker or taking physical delivery.
• Blockchain transparency — XAUT is audited against physical vault holdings, providing on-chain verifiability.
• Global accessibility — USDT and XAUT are accessible in markets where traditional financial infrastructure is limited.

The move also signals Tether's ambition to position XAUT as a serious financial instrument beyond trading speculation — one that can function as institutional income currency within the gold sector.

Key Timeline

Disclaimer: This article is for informational and journalistic purposes only. Nothing in this article constitutes investment advice. Royalty company stocks and cryptocurrency assets including XAUT carry significant risk. Always consult a qualified financial advisor before making investment decisions.