Gold Royalty Announces Acquisition of Additional Borborema Royalty

Rhea-AI Summary

Gold Royalty (NYSE American: GROY) agreed to acquire a net smelter royalty on the Borborema gold mine for US$45 million, paid as US$30 million cash plus 3,571,429 common shares priced at a 20-day VWAP of US$4.20. The Royalty is 1.5% NSR on the first 1.5 Moz payable gold and 1.0% NSR until 2.0 Moz (thereafter nil). Taurus intends to buy a one-half economic interest for US$22.5 million. The transaction is subject to customary conditions and is expected to close in January 2026. The additional Royalty complements Gold Royalty's existing 2.0% NSR (stepping down to 0.5% after 725,000 oz) and includes buyback and option features tied to the operator.

Positive

• Acquisition funded for a total of US$45 million
• Royalty provides 1.5% NSR on first 1.5 Moz payable gold
• Taurus to acquire half the royalty for US$22.5 million
• Consideration includes 3,571,429 shares, aligning seller with GROY

Negative

• Issuance of 3,571,429 common shares causes shareholder dilution
• Acquired Royalty terminates after 2.0 Moz payable gold (then nil)
• Existing Borborema royalty subject to operator buyback (after 2.25 Moz or year 2050)

News Market Reaction

+1.46%

1 alert

+1.46% News Effect

On the day this news was published, GROY gained 1.46%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Total consideration: US$45 million Cash component: US$30 million Share issuance: 3,571,429 shares +5 more

8 metrics

Total consideration US$45 million Purchase price for additional Borborema Royalty

Cash component US$30 million Cash portion of Borborema Royalty acquisition price

Share issuance 3,571,429 shares New common shares issued to Dundee as part of consideration

Reference VWAP US$4.20 20-day VWAP used to price share component

New NSR rate 1.5% NSR On first 1.5 Moz of payable gold from Borborema Project

Step-down NSR 1.0% NSR From 1.5 Moz to 2.0 Moz payable gold; then nil thereafter

Existing NSR 2.0% NSR Current Borborema royalty before stepdown

Existing stepdown threshold 725,000 ounces Payable gold before existing royalty steps down to 0.5% NSR

Market Reality Check

Price: $4.12 Vol: Volume 6,712,294 is 2.38x...

high vol

$4.12 Last Close

Volume Volume 6,712,294 is 2.38x the 20-day average of 2,820,332, indicating elevated pre-news interest. high

Technical Price 4.78 is trading above the 200-day MA of 2.95 and near the 52-week high of 4.82.

Peers on Argus

GROY gained 2.14% with strong volume, while key gold peers like CMCL (-2.52%), O...

GROY gained 2.14% with strong volume, while key gold peers like CMCL (-2.52%), ODV (-3.46%), IAUX (-3.75%), and DC (-1.89%) declined, pointing to a stock-specific reaction rather than a sector-wide move.

Historical Context

5 past events · Latest: Jan 06 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 06	Drill results	Positive	+4.3%	Additional RC drilling assays at São Jorge with high-grade gold intercepts.
Jan 02	Management change	Neutral	+1.0%	President shifts to Brazil country manager; CEO assumes President title.
Dec 12	Royalty acquisition	Positive	-0.2%	Completion of Pedra Branca copper and gold royalty acquisition.
Dec 11	Equity financing	Neutral	+1.5%	US$103.5M bought deal equity financing to fund Pedra Branca royalty.
Dec 10	Conference call	Neutral	-1.0%	Announcement of conference call to discuss Pedra Branca royalty deal.

Pattern Detected

Recent news has generally seen price moves that align with the tone of announcements, with one divergence on a completed royalty acquisition.

Recent Company History

Over the past months, the company and its close sector peer have reported exploration progress, management changes, financings, and royalty acquisitions. Notably, Gold Royalty completed the Pedra Branca royalty acquisition on Dec 12, 2025 following a US$103.5 million bought deal financing on Dec 11, 2025. Acquisition-related headlines showed mixed short-term price reactions, with one Pedra Branca agreement on Dec 8, 2025 coinciding with a -9.18% move. Today’s Borborema royalty deal continues the strategy of expanding Brazilian royalty exposure.

Market Pulse Summary

This announcement details a US$45 million acquisition of an additional royalty on the Borborema Proj...

Analysis

This announcement details a US$45 million acquisition of an additional royalty on the Borborema Project, expanding the company’s Brazilian gold exposure alongside its existing 2.0% NSR. Prior Pedra Branca royalty deals and financing on Dec 11–12, 2025 show a pattern of building a diversified royalty portfolio. Investors may watch closing of the transaction, Taurus’ planned participation, and future disclosures on production volumes and cash flow contributions from the combined Borborema royalties.

Key Terms

net smelter royalty, vwap, nsr

3 terms

net smelter royalty financial

"it has entered into an agreement to acquire a net smelter royalty (the "Royalty")"

A net smelter royalty (NSR) is a contractual payment to the holder of mineral rights equal to a fixed percentage of the revenue from the sale of mined metals after they have been processed and basic costs like smelting and transport are deducted. Think of it as a toll on each shipment of metal: it reduces the operator’s take from production but provides the royalty holder with a steady, production-linked income stream that investors use to value both mines and royalty assets.

vwap financial

"common shares of the Company based on a 20-day VWAP of US$4.20"

VWAP, or Volume-Weighted Average Price, is a way to find the average price of a stock throughout the trading day, giving more importance to times when more shares are traded. It helps traders see the typical price and decide whether a stock is expensive or cheap compared to its average, similar to finding the average speed during a trip by giving more weight to times when you traveled faster or slower.

nsr financial

"consists of a 2.0% NSR, subject to a stepdown to a 0.5% NSR"

NSR, or Net Service Revenue, is the total income a company earns from its core services after subtracting any discounts, refunds, or allowances. It reflects the actual money coming in from the main operations, similar to how a store’s sales revenue shows what it gains from selling products, minus returns or discounts. For investors, NSR provides a clearer picture of a company's true earning power from its primary business activities.

AI-generated analysis. Not financial advice.

VANCOUVER, BC, Jan. 14, 2026 /PRNewswire/ - Gold Royalty Corp. ("Gold Royalty" or the "Company") (NYSE American: GROY) is pleased to announce that it has entered into an agreement to acquire a net smelter royalty (the "Royalty") on the Borborema gold mine and property ("Borborema Project") from Dundee Corporation ("Dundee") for total consideration of US$45 million, comprised of US$30 million in cash and 3,571,429 newly issued common shares of the Company based on a 20-day VWAP of US$4.20.

The Royalty applies to the Borborema Project, operated by Aura Minerals Inc. ("Aura Minerals"). The Royalty rate is 1.5% of net smelter returns on the first 1.5 million ounces ("Moz") of payable gold production and 1.0% until 2.0 Moz of payable gold is produced (thereafter nil).

The transaction is subject to customary conditions and is currently expected to be completed in January 2026. Taurus Mining Royalty Fund, L.P. ("Taurus") has notified the Company that it wishes to participate in this investment under the previously announced mutual cooperation agreement between the parties. Taurus intends to acquire an economic interest to one-half of the Royalty acquired under the transaction for US$22.5 million in cash. Taurus' participation is subject to, among other things, completion of the proposed acquisition and finalizing a definitive participation agreement and other customary conditions.

This additional Borborema Royalty will complement the Company's existing royalty on the Borborema gold mine which consists of a 2.0% NSR, subject to a stepdown to a 0.5% NSR after 725,000 ounces of payable gold is produced at the mine. The existing royalty is also subject to the operator's buyback after the earlier of 2.25 Moz payable gold are produced, or the year 2050. Gold Royalty also has an option to receive an additional 0.5% NSR on the Borborema gold mine on repayment of its gold-linked loan, subject to similar buyback rights of the operator.

David Garofalo, Chairman and Chief Executive Officer of Gold Royalty stated: "Our acquisition of an additional royalty on the Borborema Project is a testament to our confidence in the continued performance of the operation and the capabilities of the Aura Minerals team. We are pleased to increase our interest in this high-quality asset and to further strengthen our ties to Brazil, an important global mining jurisdiction. We continue to look for opportunities to expand our asset portfolio and to deploy capital, using a prudent and disciplined approach and prioritizing near-term cash flow from high quality assets".

"This agreement with Dundee is another example of how our team's deep connectivity into the metals and mining sector can facilitate our growth even in a competitive royalty landscape through bilaterial, relationship-based transactions."

About Borborema

The Borborema Project is located in the Seridó region, Rio Grande do Norte State, northeast Brazil. It consists of mining concessions and exploration properties. The mine was built and is operated by Aura Minerals Inc.

On September 23, 2025, Aura Minerals announced that it achieved commercial production at the mine effective September 22, 2025, with the mine operating at 80% of design capacity, processing 4,500 tonnes per day.  On January 12, 2026, Aura announced that total production at the mine in Q4 2025 totaled 15,777 gold equivalent ounces, 54% above the previous quarter.

For further information regarding the Borborema Project, please refer to the technical report summary titled "Technical Report Summary on the Feasibility Study for the Borborema Gold Project, Currais Novos Municipality, Rio Grande de Norte, Brazil" dated March 28, 2025, with an effective date of January 31, 2023 (the "Borborema Technical Report") prepared for Aura Minerals and Aura's other public disclosures, including those referenced herein, which are available under its profiles at www.sedarplus.ca and www.sec.gov.

About Gold Royalty Corp.

Gold Royalty Corp. is a gold-focused royalty company offering creative financing solutions to the metals and mining industry. Its mission is to invest in high-quality, sustainable, and responsible mining operations to build a diversified portfolio of precious metals royalty and streaming interests that generate superior long-term returns for our shareholders. Gold Royalty's diversified portfolio currently consists primarily of net smelter return royalties on gold properties located in the Americas.

Notice to Investors

Alastair Still, P.Geo., Director of Technical Services of the Company, is a "qualified person" as such term is defined under Canadian National Instrument 43-101 and has reviewed and approved the technical information disclosed in this news release.

Except where otherwise stated, the disclosure in this news release relating to the Borborema mine has been derived from the Borborema Technical Report and Aura's other disclosures identified herein. Such information has not been independently verified by the Company. Specifically, Gold Royalty has limited, if any, access to the property subject to the Royalty. Although Gold Royalty does not have any knowledge that such information may not be accurate, there can be no assurance that such third-party information is complete or accurate.

Forward-Looking Statements:

Certain of the information contained in this news release constitutes "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and U.S. securities laws (collectively, "forward-looking statements"), including but not limited to statements regarding the proposed acquisition, Taurus' proposed participation and the satisfaction of closing conditions to each of them. Such statements can be generally identified by the use of terms such as "may", "will", "expect", "intend", "believe", "plans", "anticipate" or similar terms. Forward-looking statements are based upon certain assumptions and other important factors, including that the conditions to the acquisition will be satisfied or that Taurus and the Company will finalize arrangements for Taurus' participation in the Royalty. Forward-looking statements are subject to a number of risks, uncertainties and other factors which may cause the actual results to be materially different from those expressed or implied by such forward-looking statements including, among others, the possibility that the acquisition does not close when expected, or at all, because conditions to closing are not satisfied on a timely basis, or at all, and other factors set forth in the Company's Annual Report on Form 20-F for the year ended December 31, 2024, its registration statement, prospectuses and prospectus supplements relating to the Offering and its other publicly filed documents, available under its profiles at www.sedarplus.ca and www.sec.gov. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, prospectuses and prospectus supplement, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

View original content:https://www.prnewswire.com/news-releases/gold-royalty-announces-acquisition-of-additional-borborema-royalty-302660636.html

SOURCE Gold Royalty Corp.

FAQ

What did GROY announce on January 14, 2026 regarding Borborema?

GROY agreed to acquire a Borborema net smelter royalty for US$45 million (US$30M cash + 3,571,429 shares) expected to close in January 2026.

What are the royalty rates in Gold Royalty's new Borborema agreement (GROY)?

The acquired Royalty is 1.5% NSR on the first 1.5 Moz payable gold and 1.0% NSR until 2.0 Moz, then ends.

How does Taurus' participation affect the GROY Borborema deal?

Taurus intends to buy a one-half economic interest in the acquired Royalty for US$22.5 million, subject to a definitive agreement and closing conditions.

How does this acquisition interact with GROY's existing Borborema royalty?

The new royalty complements an existing 2.0% NSR that steps down to 0.5% after 725,000 ounces and carries operator buyback rights.

What shareholder impact does GROY's consideration include?

Consideration includes 3,571,429 newly issued common shares, which will dilute existing shareholders when issued.

When is the GROY Borborema royalty acquisition expected to close?

The transaction is currently expected to be completed in January 2026, subject to customary closing conditions.