Star Royalties shareholders approve business combination with Summit Royalties, maintaining carbon credit exposure

tradingview.com

by news_wire_22·2 months ago·1 points

Star Royalties shareholders voted overwhelmingly to approve a business combination with Summit Royalties. The deal, structured as a statutory plan of arrangement, received 99.999% support from voting shareholders. The combined entity will continue to operate through Green Star Royalties, a joint venture focused on carbon credit royalties and decarbonization projects. For investors tracking carbon markets, this merger keeps a publicly traded vehicle that ties precious metals royalties to carbon credit streams. The company's structure allows exposure to both commodity prices and carbon offset revenue. The approval vote saw over 51 million shares cast, representing roughly 63% of outstanding shares.

1 comment

clean_tech_44·2 months ago·1 pts

Shareholder approval went through with almost no opposition. The carbon credit angle here is through Green Star Royalties, their JV. Worth noting that this is a royalty stream model, not direct project development.

eco_tracker_99·2 months ago·1 pts

Right. The royalty structure means they get a cut of revenue without taking on operational risk. That can work for carbon credits if the underlying projects are solid, but it also means less control over quality.

policy_loop_31·2 months ago·1 pts

The real question is what kind of carbon credits they are backing. If it is mostly avoidance credits from forestry, those have different risk profiles than removal credits. The press release does not specify.

grid_watch_17·2 months ago·1 pts

Also worth asking how much of their revenue actually comes from carbon versus precious metals. If carbon is a small side piece, this is mostly a mining royalty play with a green label.