Interview with Adam Davidson, CEO of Arc Mineral Royalties
Recording date: 27th October 2026
Arc Mineral Royalties (TSXV:ARO) is a newly listed royalty company built around a specific origination advantage. Chief Executive Officer Adam Davidson and his team previously built Trident Royalties from a shell company into a cash takeover of roughly US$200 million in about four years. Over that period Trident completed 15 transactions and its share price rose 3.1 times to the takeover price, according to Arc's corporate presentation.
At Arc, the team has paired that experience with Karri Capital Partners, an Australian group whose principals helped build companies including Bellevue Gold, FireFly Metals and Andean Silver. Davidson said Karri owns just under 25% of Arc. The partnership's logic is straightforward. Karri's principals concluded that, had they retained royalties on their earlier projects, they would now hold a highly valuable portfolio. Arc is the vehicle for retaining those royalties on future Karri projects, with Arc's team managing terms and execution.
The first royalty shows the model at work. Arc paid A$5 million for a 1% NSR over the Mt Henry Gold Project in Western Australia, operated by Sinclair Gold. Davidson said the terms were well below market and the royalty was never offered to other buyers. Mt Henry is a past-producing brownfields project with granted mining licences. Sinclair Gold began a 50,000-metre drill programme after acquiring the project in February 2026. Its September 2026 interim resource stood at 1.3Moz at 1.2 g/T gold Measured and Indicated plus 0.5Moz Inferred, with only around 41% of the planned metres included. Davidson said Arc's internal work points to about 2.5Moz to 3Moz after the current programme. Once the resource exceeds 2Moz, Arc can buy a second 1% for A$10 million, which Davidson said Arc would fund with new capital and would not decline.
The second royalty came at nominal cost. Arc took delivery of a 0.5% gross revenue royalty over the Lodestone Iron Ore Project, operated by Killi Resources and chaired by former Fortescue Chief Executive Officer Neville Power. Lodestone hosts a 110 million tonne Inferred resource producing a 69% Fe concentrate, with drilling under way along a magnetite system far larger than the area drilled so far. Davidson highlighted the coarse grind indicated by early testwork, which could mean much lower capital costs than conventional magnetite projects. No study has been published. The gross revenue structure also avoids the shipping deduction common in FOB-based iron ore royalties.
Arc held about C$9 million in cash and had a market capitalisation of about C$57 million as of October 2026. Davidson said Arc can also pursue royalties independently of Karri and will use below-market Karri deals to balance returns on assets bought at market prices. He committed to quarterly shareholder updates.
Learn more: https://www.cruxinvestor.com/companies/arc-mineral-royalties
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