Elemental Royalties Corporation and Altus Strategies plc, both of which work in gold mining, announced reaching an agreement to share a merger of equals. The two companies will form the new Elemental Altus Group.

According to the merger agreement, each shareholder in Altus will be entitled to have 0.5940 new elemental shares for each Altus share. The exchange ratio has been agreed upon between the boards of the two companies, taking into account the relative market capitalization of both firms.

Upon the merger completion, Elemental shareholders will own around 52.9%, while Altus shareholders will own approximately 47.1% of the total issued share capital of the newly formed group.

“We are very pleased to announce a compelling merger with Altus Strategies that deliver materially increased revenues, scale, and market relevance to both companies,” Frederick Bell, Elemental CEO, commented.