CALGARY, ALBERTA--(Marketwire - March 13, 2013) -Gold Royalties Corporation(TSX VENTURE:GRO) ("Gold Royalties") is pleased to announce that it has entered into a binding agreement to acquire a royalty asset (the "Asset"), represented by a 1% net smelter return royalty (the "NSR Royalty") on the Barry Gold Deposit (as detailed below) located approximately 190km northeast of Val d'Or, Québec (the "Transaction").
"Gold Royalties Corporation is pleased to continue our ongoing investment in Québec's mining sector. The very difficult equity markets mean that junior mining companies should continue to turn to capital partners like Gold Royalties Corporation to create mutually accretive opportunities. Based on our current assessment of Metanor Resource's publicly-stated resource around the Barry Gold Deposit, and confidence augmented by their delivery of cash to us involving their initial Bachelor Lake property, we expect this royalty to be highly-accretive; eventually yielding more than 7,500 ounces of gold to Gold Royalties Corporation at an all-in purchased and carried-to production cost of less than $75 per anticipated ounce. Today's transaction, which of course is subject to possible future upside from Metanor Resources' cash-flow funded property-level exploration, is exemplary of the significant positive return transactions that fellow shareholders should continue to expect from GRO's management team in an increasingly attractive capital-deployment environment," stated Ryan Kalt, President and Chief Executive Officer of Gold Royalties.
The Asset will be acquired from Kingston-based Murgor Resources Inc. (TSX VENTURE:MGR) ("Murgor Resources") for cash consideration of $450,000 (the "Purchase Price"). The Transaction is fully funded from treasury. Closing of the Transaction is expected to occur on or before March 22, 2013.
About the Royalty Interest
The Barry Gold Deposit
The Barry Gold Deposit Royalty covers two property segments with go-forward, stand-alone royalty obligations.
Maps related to the Barry Gold Deposit Royalty may be found at: (www.goldroyalties.ca/pressreleases/Barry_Map_1.pdf) and (www.goldroyalties.ca/pressreleases/Barry_Map_2.pdf).
The first segment underlays the deposit identified by Metanor Resources Inc. ("Metanor Resources" or "the Operator") and comprises a 1% NSR royalty, none of which may be repurchased by the Operator. Metanor Resources has outlined, by way of press release dated September 21, 2010, a resource comprising 309,500 oz Au of Indicated Resources (7,701,000 t at 1.25 g/t Au) and 471,950 oz Au of Inferred Resources (10,411,000 t at 1.41 g/t Au).
On the second segment of Barry-1, which is believed to represent expansion to the ore body identified above, Metanor Resources is entitled to re-purchase one-half of the 1% royalty covering that non-deposit property position for $500,000. Gold Royalties is pleased to observe that this non-deposit re-purchase right may yield cash proceeds in excess of the total acquisition price paid by Gold Royalties for the NSR Royalty.
Additional information on Barry Gold Deposit may be found by way of Metanor Resources' website (https://www.metanor.ca/media_uploads/metanor-barry.pdf), which Gold Royalties encourages review of.
About Gold Royalties Corporation
Gold Royalties Corporation is a publicly traded, growth-orientated royalty business that acquires and holds mining royalty assets for investment purposes. The company acquires gross sales royalties, net smelter return royalties and metal stream royalties, with a focus on gold royalties located in stable jurisdictions. For more information, please visit www.GoldRoyalties.ca.
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Murgor Resources to sell its net smelter return royalty at the Barry 1 Property for $450,000
murgor.com | MGR : TSX-V
KINGSTON, ON, March 13, 2013 /CNW/ - Murgor Resources Inc. (TSXV: MGR) is pleased to announce that it has entered into a binding agreement to sell a 1% net smelter return (NSR) royalty Letter of Intent to sell its 1% Net Smelter Return (NSR) Royalty interest in the Barry-1 Property to Gold Royalties Corporation for a cash consideration of $450,000. The Barry-1 Property comprises 14 claims which cover the Barry Gold Deposit, located approximately 190km northeast of Val d'Or, Québec. The Barry Gold Deposit is presently owned by Metanor Resources Inc. Closing of the transaction is expected to occur on or before March 22, 2013.
"The sale of our 1% NSR Royalty at Barry is part of Murgor's strategy to divest of certain dormant assets to finance its exploration and administrative costs by non-dilutive means. Other assets considered for divestiture are certain interests in the Windfall Gold Property of Quebec and in Murgor's 100% owned Wim and Hudvam copper-gold-zinc deposits in Manitoba. Murgor is pleased to be dealing with Gold Royalties Corporation which offered us an all cash, quick closing to this transaction," stated Andre C. Tessier, President and CEO of Murgor Resources.