GOLD ROYALTY COMPLETES PREVIOUSLY ANNOUNCED ACQUISITION OF ROYALTY PORTFOLIO FROM NEVADA GOLD MINES
Gold Royalty Corp. (NYSE American: GROY) has completed its acquisition of a royalty portfolio from Nevada Gold Mines LLC for US$27.5 million.
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Rhea-AI Summary
Gold Royalty Corp. (NYSE American: GROY) has completed its acquisition of a royalty portfolio from Nevada Gold Mines LLC for US$27.5 million. The deal includes a 10% net profits interest royalty on the Granite Creek Mine, a 2.00% net smelter return royalty on the Bald Mountain Mine, and a 1.25% NSR on the Bald Mountain Joint Venture Zone. The acquisition was funded by issuing 9,393,681 common shares to NGM at a deemed price of approximately US$2.93 per share, enhancing Gold Royalty's portfolio of gold properties in the Americas.
Positive
- Acquisition of a valuable royalty portfolio expected to generate future revenue.
- Increased exposure to production from Granite Creek and Bald Mountain Mines with potential for profit growth.
Negative
- The transaction resulted in the issuance of common shares, which may lead to dilution for existing shareholders.
Details
News Market Reaction – GROY
The recorded move for GROY in the trading session of this news was +7.42%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
VANCOUVER, BC, Sept. 28, 2022 /PRNewswire/ - Gold Royalty Corp. ("Gold Royalty" or the "Company") (NYSE American: GROY) is pleased to announce the completion of its previously announced acquisition from Nevada Gold Mines LLC ("NGM"), a joint venture between Barrick Gold Corporation and Newmont Corporation, of a royalty portfolio consisting of:
- a
10% net profits interest royalty on the producing Granite Creek Mine operated by i-80 Gold Corp., payable after 120,000 oz of gold or equivalent is cumulatively produced from the project;
- a
2.00% net smelter return royalty on the Bald Mountain Mine operated by Kinross Gold Corporation ("Kinross"), payable after 10 million ounces of gold have been produced from the properties; and
- a
1.25% NSR on the Bald Mountain Joint Venture Zone also operated by Kinross.
Pursuant to the transaction, the Company indirectly acquired the royalty portfolio in consideration for US
Gold Royalty is a gold-focused royalty company offering creative financing solutions to the metals and mining industry. Its mission is to acquire royalties, streams and similar interests at varying stages of the mine life cycle to build a balanced portfolio offering near, medium and longer-term attractive returns for its investors. Gold Royalty's diversified portfolio currently consists primarily of royalties on gold properties located in the Americas.
View original content:https://www.prnewswire.com/news-releases/gold-royalty-completes-previously-announced-acquisition-of-royalty-portfolio-from-nevada-gold-mines-301634386.html
SOURCE Gold Royalty Corp.
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