BHP Group Limited’s wholly owned subsidiary has secured an exclusive option to acquire three early-stage exploration licenses in Serbia’s Bor Mining District from Elemental Royalty’s Serbian arm, Magma Resources doo. Under the definitive agreement executed on January 16, 2026, BHP may acquire full ownership of Magma by making structured cash payments and fulfilling work commitments over five years. Elemental will retain 2% net smelter return royalties on each license and additional future considerations tied to project milestones.

To exercise the option in full, BHP will pay Elemental Royalty US$200,000 on the six-month anniversary of the agreement and US$200,000 on each annual anniversary thereafter until the earn-in is complete. In parallel, BHP must invest a cumulative US$5 million in exploration on the three licenses within five years. Upon option exercise, BHP may acquire up to 0.5% of the royalty in two tranches of 0.25% each by paying US$5 million per tranche before the eighth and eleventh anniversaries, respectively.

The Lenovac North, Lenovac South and Durlan Istok licenses extend along the same geological trend as Zijin’s Čukaru Peki and Malka Golaja copper-gold deposits, which report rapidly growing mineral resources. BHP’s deep-sensing geophysical expertise positions it to target both near-surface porphyry and deeper skarn systems identified by recent discoveries in the district. The transaction complements BHP’s portfolio by providing immediate exposure to one of Europe’s most prolific copper provinces without initial capital outlay for asset acquisition.