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OR Royalties Announces Increase of Credit Facility and Positive Net Cash Position

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OR Royalties has announced significant financial developments, including an expanded credit facility and a positive net cash position. The company has amended its credit facility from Canadian to US dollars, increasing it to $650 million with an additional $200 million accordion option, totaling potential availability of $850 million. The facility maintains interest rates at SOFR or CORRA plus 1.45% to 2.75% annually and extends until May 2029. Additionally, OR Royalties stands to receive $49 million from its 4 million shares in MAC Copper, which is being acquired by Harmony Gold for $12.25 per share. The company's CEO Jason Attew highlighted that these developments demonstrate the strength of their asset portfolio and provide enhanced financial flexibility for strategic growth opportunities.
OR Royalties ha annunciato importanti sviluppi finanziari, tra cui un ampliamento della linea di credito e una posizione netta di cassa positiva. La società ha modificato la propria linea di credito da dollari canadesi a dollari statunitensi, portandola a 650 milioni di dollari con un'opzione aggiuntiva di 200 milioni, per una disponibilità potenziale totale di 850 milioni di dollari. La linea di credito mantiene tassi di interesse basati su SOFR o CORRA più un margine annuo compreso tra l'1,45% e il 2,75% e si estende fino a maggio 2029. Inoltre, OR Royalties riceverà 49 milioni di dollari dalle sue 4 milioni di azioni in MAC Copper, che sta per essere acquisita da Harmony Gold a 12,25 dollari per azione. Il CEO Jason Attew ha sottolineato che questi sviluppi dimostrano la solidità del loro portafoglio di asset e offrono una maggiore flessibilità finanziaria per opportunità di crescita strategica.
OR Royalties ha anunciado desarrollos financieros significativos, incluyendo una ampliación de su línea de crédito y una posición neta de efectivo positiva. La empresa ha modificado su línea de crédito de dólares canadienses a dólares estadounidenses, incrementándola a 650 millones de dólares con una opción adicional de 200 millones, sumando una disponibilidad potencial total de 850 millones de dólares. La línea mantiene tasas de interés basadas en SOFR o CORRA más un margen anual de entre 1.45% y 2.75%, y se extiende hasta mayo de 2029. Además, OR Royalties recibirá 49 millones de dólares por sus 4 millones de acciones en MAC Copper, que está siendo adquirida por Harmony Gold a 12.25 dólares por acción. El CEO Jason Attew destacó que estos avances demuestran la fortaleza de su portafolio de activos y proporcionan una mayor flexibilidad financiera para oportunidades estratégicas de crecimiento.
OR Royalties는 신용 한도 확대와 긍정적인 순현금 상태 등 중요한 재무 발전을 발표했습니다. 회사는 캐나다 달러에서 미국 달러로 신용 한도를 변경하여 6억 5천만 달러로 늘렸으며, 추가로 2억 달러의 확장 옵션을 포함해 총 8억 5천만 달러의 잠재적 이용 가능 금액을 확보했습니다. 이 신용 한도는 SOFR 또는 CORRA에 연 1.45%에서 2.75%의 이자율을 유지하며 2029년 5월까지 연장됩니다. 또한 OR Royalties는 MAC Copper의 400만 주를 보유하고 있으며, 이 회사가 주당 12.25달러에 Harmony Gold에 인수됨에 따라 4,900만 달러를 받게 됩니다. CEO 제이슨 애튜는 이러한 발전이 자산 포트폴리오의 강점을 보여주며 전략적 성장 기회를 위한 재무 유연성을 강화한다고 강조했습니다.
OR Royalties a annoncé des développements financiers importants, notamment une facilité de crédit étendue et une position nette de trésorerie positive. La société a modifié sa facilité de crédit en passant du dollar canadien au dollar américain, l'augmentant à 650 millions de dollars avec une option supplémentaire de 200 millions, portant la disponibilité potentielle totale à 850 millions de dollars. La facilité maintient des taux d'intérêt basés sur le SOFR ou le CORRA plus une marge annuelle de 1,45 % à 2,75 % et s'étend jusqu'en mai 2029. De plus, OR Royalties recevra 49 millions de dollars pour ses 4 millions d'actions dans MAC Copper, qui est en cours d'acquisition par Harmony Gold au prix de 12,25 dollars par action. Le PDG Jason Attew a souligné que ces développements démontrent la solidité de leur portefeuille d'actifs et offrent une flexibilité financière accrue pour des opportunités de croissance stratégique.
OR Royalties hat bedeutende finanzielle Entwicklungen bekanntgegeben, darunter eine erweiterte Kreditfazilität und eine positive Nettokassenposition. Das Unternehmen hat seine Kreditfazilität von kanadischen auf US-Dollar umgestellt und auf 650 Millionen US-Dollar erhöht, mit einer zusätzlichen Akkordeon-Option von 200 Millionen, was eine potenzielle Gesamtkapazität von 850 Millionen US-Dollar ergibt. Die Fazilität behält Zinssätze basierend auf SOFR oder CORRA plus 1,45 % bis 2,75 % jährlich bei und läuft bis Mai 2029. Zudem wird OR Royalties 49 Millionen US-Dollar aus seinen 4 Millionen Aktien an MAC Copper erhalten, das von Harmony Gold zu 12,25 US-Dollar pro Aktie übernommen wird. CEO Jason Attew betonte, dass diese Entwicklungen die Stärke ihres Asset-Portfolios zeigen und eine verbesserte finanzielle Flexibilität für strategische Wachstumschancen bieten.
Positive
  • Expanded credit facility from C$550M to US$650M with additional US$200M accordion option
  • Conversion to USD denomination provides better alignment with business operations
  • Positive net cash position achieved through robust operating cash flows
  • Expected $49M cash inflow from MAC Copper shares upon Harmony Gold acquisition
  • Maintained favorable interest rate terms in credit facility amendment
  • Extended credit facility term to May 2029, providing long-term financial stability
Negative
  • None.

Insights

OR Royalties strengthens financial position with expanded credit facility, positive net cash, and $49M potential cash inflow from MAC Copper acquisition.

The amendment to OR Royalties' credit facility represents a significant financial enhancement for the company. The facility has been expanded from C$550 million to $650 million USD with an additional uncommitted accordion of up to $200 million, potentially totaling $850 million. This 18% increase in the base facility provides substantially greater financial flexibility.

The conversion from CAD to USD denomination is strategically sound, as it better aligns with the company's revenue streams, which are likely predominantly in USD given the nature of the mining royalty business. The interest terms remain unchanged at SOFR or CORRA plus 1.45% to 2.75%, depending on leverage ratios.

Two particularly positive developments stand out. First, OR Royalties has achieved a positive net cash position, indicating that their cash on hand exceeds their debt obligations. This reflects strong operational cash flow generation and disciplined capital management, providing a solid foundation for future growth initiatives.

Second, the company stands to receive approximately $49 million in cash from the Harmony Gold acquisition of MAC Copper at $12.25 per share. This transaction, expected to close later this year, will further strengthen the company's balance sheet and increase its acquisition capacity.

The expanded credit facility, combined with the positive net cash position and incoming funds from the MAC Copper transaction, positions OR Royalties exceptionally well to pursue new royalty and streaming opportunities in the mining sector. The strong backing of nine major financial institutions in the credit facility also demonstrates lender confidence in the company's business model and growth trajectory.

MONTRÉAL, June 09, 2025 (GLOBE NEWSWIRE) -- OR Royalties Inc. (the “Company” or “OR Royalties”) (OR: TSX & NYSE) is pleased to announce that it has amended its existing revolving credit facility (the “Credit Facility”), including the conversion from a Canadian dollar denominated facility to a United States dollar denominated facility, as well as an increase in the overall size of the Credit Facility. Amounts presented are in United States dollars, except where otherwise noted.

Under the amended agreement, the Company has access to a Credit Facility of $650 million with an additional uncommitted accordion of up to $200 million, for a total availability of up to $850 million. The previous credit facility agreement had a maximum amount of C$550  million with an uncommitted accordion of up to C$200 million.

Advances under the amended Credit Facility are subject to interest at the Secured Overnight Financing Rate (SOFR) or Canadian Overnight Repo Rate Average (CORRA) plus 1.45% to 2.75% per annum, depending on the Company’s leverage ratio, unchanged from the previous credit facility agreement. The Credit Facility has a term of four years, maturing on May 30th, 2029.

Jason Attew, President & CEO of OR Royalties commented: “The expansion of our Credit Facility underscores the strength and quality of our asset portfolio and reflects the confidence in OR Royalties' long-term growth prospects. Combined with our current cash balance, the enhanced financial flexibility provided by the upsized facility positions us well to pursue strategic and accretive growth opportunities. We extend our sincere appreciation to our financial partners, whose continued support since OR Royalties' inception in 2014 has been instrumental in our success. We are also pleased to report that, as a result of robust operating cash flows and disciplined capital allocation, OR Royalties now holds a positive net cash position, further reinforcing our solid financial foundation.”

The amended Credit Facility was led by National Bank of Canada and includes Bank of Montréal, Royal Bank of Canada and The Bank of Nova Scotia, as well as Canadian Imperial Bank of Commerce, The Toronto-Dominion Bank, Bank of America N.A. (Canada Branch), Export Development Canada, and Fédération des caisses Desjardins du Québec.

Separately, on May 27th, 2025, MAC Copper Limited (“MAC Copper”) announced that it had entered into a binding scheme implementation deed (the “Transaction”) with Harmony Gold Mining Company Limited (“Harmony”) and Harmony Gold (Australia) Pty Ltd (“Harmony Australia”), a wholly-owned subsidiary of Harmony, under which it is proposed that Harmony Australia will acquire 100% of the issued share capital in MAC Copper. Under the terms of the Transaction, MAC Copper shareholders will receive US$12.25 cash per MAC Copper share. As of June 9th, 2025, OR Royalties, through its wholly-owned subsidiary OR Royalties International Ltd., owns 4,000,000 shares of MAC Copper, which under the current terms of the Transaction are worth $49.0 million. This all-cash binding acquisition by Harmony will further strengthen OR Royalties’ balance sheet upon closing, expected later this year.

About OR Royalties Inc.

OR Royalties Inc. is an intermediate precious metal royalty company which holds a North American focused portfolio of over 195 royalties, streams and precious metal offtakes, including 21 producing assets. OR Royalties’ portfolio is anchored by its cornerstone asset, a 3-5% net smelter return royalty on the Canadian Malartic Complex, home to one of Canada’s largest gold mines. 

OR Royalties’ head office is located at 1100 Avenue des Canadiens-de-Montréal, Suite 300, Montréal, Québec, H3B 2S2.

For further information, please contact OR Royalties Inc.:
 
Grant Moenting
Vice President, Capital Markets
Tel: (514) 940-0670 x116
Cell: (365) 275-1954
Email: gmoenting@ORroyalties.com
Heather Taylor
Vice President, Sustainability and Communications
Tel: (514) 940-0670 x105
Email: htaylor@ORroyalties.com
  

Forward-Looking Statements

Certain statements contained in this press release may be deemed “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking statements are statements other than statements of historical fact, that address, without limitation, future events, that OR Royalties will be able to pursue strategic, accretive growth opportunities and that it will maintain a positive net cash position. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential”, “scheduled” and similar expressions or variations (including negative variations), or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, most of which are beyond the control of OR Royalties, and actual results may accordingly differ materially from those in forward-looking statements. Such risk factors include, without limitation, (i) with respect to properties in which OR Royalties holds a royalty, stream or other interest; risks related to: (a) the operators of the properties, (b) timely development, permitting, construction, commencement of production, ramp-up (including operating and technical challenges), (c) differences in rate and timing of production from resource estimates or production forecasts by operators, (d) differences in conversion rate from resources to reserves and ability to replace resources, (e) the unfavorable outcome of any challenges or litigation relating title, permit or license, (f) hazards and uncertainty associated with the business of exploring, development and mining including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters or civil unrest or other uninsured risks, (ii) with respect to other external factors: (a) fluctuations in the prices of the commodities that drive royalties, streams, offtakes and investments held by OR Royalties, (b) a trade war or new tariff barriers, (c) fluctuations in the value of the Canadian dollar relative to the U.S. dollar, (d) regulatory changes by national and local governments, including permitting and licensing regimes and taxation policies, regulations and political or economic developments in any of the countries where properties in which OR Royalties holds a royalty, stream or other interest are located or through which they are held, (e) continued availability of capital and financing and general economic, market or business conditions, and (f) responses of relevant governments to infectious diseases outbreaks and the effectiveness of such response and the potential impact of such outbreaks on OR Royalties’ business, operations and financial condition; (iii) with respect to internal factors: (a) business opportunities that may or not become available to, or are pursued by OR Royalties, (b) the integration of acquired assets or (c) the determination of OR Royalties’ PFIC status (d) that preliminary financial information may be subject to quarter end adjustments. The forward-looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the absence of significant change in OR Royalties’ ongoing income and assets relating to determination of its PFIC status, and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended and, with respect to properties in which OR Royalties holds a royalty, stream or other interest, (i) the ongoing operation of the properties by the owners or operators of such properties in a manner consistent with past practice and with public disclosure (including forecast of production), (ii) the accuracy of public statements and disclosures made by the owners or operators of such underlying properties (including expectations for the development of underlying properties that are not yet in production), (iii) no adverse development in respect of any significant property, (iv) that statements and estimates relating to mineral reserves and resources by owners and operators are accurate and (v) the implementation of an adequate plan for integration of acquired assets.

For additional information on risks, uncertainties and assumptions, please refer to the most recent Annual Information Form of OR Royalties filed on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov which also provides additional general assumptions in connection with these statements. OR Royalties cautions that the foregoing list of risk and uncertainties is not exhaustive. Investors and others should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. OR Royalties believes that the assumptions reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be accurate as actual results and prospective events could materially differ from those anticipated such the forward-looking statements and such forward-looking statements included in this press release are not guarantee of future performance and should not be unduly relied upon. These statements speak only as of the date of this press release. OR Royalties undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.


FAQ

What is the new size of OR Royalties' credit facility in 2025?

OR Royalties' amended credit facility is now US$650 million with an additional uncommitted accordion of up to US$200 million, for total potential availability of US$850 million.

What interest rate will OR Royalties pay on its new credit facility?

OR Royalties will pay interest at SOFR or CORRA plus 1.45% to 2.75% per annum, depending on the company's leverage ratio.

When does OR Royalties' new credit facility mature?

The credit facility has a four-year term, maturing on May 30th, 2029.

How much will OR Royalties receive from the MAC Copper acquisition by Harmony Gold?

OR Royalties owns 4 million shares of MAC Copper, which at the acquisition price of US$12.25 per share will result in proceeds of US$49 million.

Which banks are involved in OR Royalties' credit facility?

The facility is led by National Bank of Canada and includes Bank of Montréal, Royal Bank of Canada, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, The Toronto-Dominion Bank, Bank of America N.A., Export Development Canada, and Fédération des caisses Desjardins du Québec.
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