Summit Royalties Ltd. (TSX-V: SUM) (OTCQX: SUMMF) is pleased to report that it has entered into a credit agreement with National Bank of Canada for a revolving credit facility with an initial commitment of US$25 million. The Facility includes an accordion feature providing for up to an additional US$25 million, subject to the satisfaction or waiver of certain conditions, for total potential availability of US$50 million.

Drew Clark, President and CEO of Summit, commented: “Securing this credit facility marks an important milestone for Summit as we continue to execute on our growth strategy. The credit facility strengthens our balance sheet, provides us with significant financial flexibility to pursue larger accretive royalty and streaming acquisitions and significantly lowers our cost of capital. We are pleased to partner with National Bank of Canada, one of Canada’s tier-one banks, and look forward to leveraging this new source of capital to accelerate our growth and create long-term value for our shareholders.”

Key terms of the Facility include:

• Maturity: The Facility has an initial tenor of three years, with Summit having the right to request an extension of the maturity date, subject to satisfaction or waiver of certain conditions and the consent of the lenders;
• Purpose: The Facility is available for working capital and other general corporate purposes (including acquisitions permitted under the Facility);
• Interest rate: Advances bear interest at the Secured Overnight Financing Rate or the Canadian Overnight Repo Rate Average, as applicable, plus a credit spread adjustment depending on the tenor of the applicable loan and 2.50% to 4.00% per annum, depending on the Corporation’s net leverage ratio;
• Standby fee: The undrawn portion of the Facility is subject to a standby fee of 0.5625% to 0.9000% per annum depending on the Corporation’s net leverage ratio;
• Financial covenants: The Facility requires the Corporation to meet certain financial covenants, including a net leverage ratio, an interest coverage ratio and a minimum liquidity amount; and
• Security: The Facility is secured by certain assets of the Corporation and its material subsidiaries.

Other Corporate Updates

In connection with the previously-announced acquisition of Star Royalties Ltd., Summit has entered into an agreement to issue an aggregate of 269,696 common shares of Summit at a deemed price of $1.3905 per share in partial settlement of certain financial advisory fees in the amount of $375,000. Completion of the Debt Settlement is subject to acceptance by the TSX Venture Exchange. All common shares issued in connection with the Debt Settlement will be subject to a four-month statutory hold period.

In addition, Summit has granted an aggregate of 100,000 restricted share units of the Corporation to an officer of the Corporation pursuant to its omnibus incentive plan.

Of the 100,000 RSUs granted, 50,000 RSUs are scheduled to vest on July 24, 2027 and the remainder on July 24, 2028. Once vested, each RSU represents the right to receive one common share in the capital of the Corporation per RSU held, a cash amount equivalent, or a combination thereof, in each case subject to the terms and conditions of the Plan and the RSU agreement.

About Summit Royalties Ltd.

Summit Royalties Ltd. is a precious metals royalty and streaming company. Its current portfolio is anchored by cash-flowing production with additional royalties on advanced development- and exploration-stage properties. Summit intends to become the fastest-growing royalty and streaming company by executing actionable, accretive acquisitions that increase production and drive cash flow growth.