Gold Royalty Corp GROY.WS

Primary Symbol: GROY

Metals & Mining Gold

Gold Royalty Corp. is a Canada-based gold-focused royalty company offering financing solutions to the metals and mining industry. The Company acquires royalties, streams and similar interests at varying stages of the mine life cycle to build a portfolio offering near, medium and longer-term returns for its investors. Its diversified portfolio consists primarily of net smelter return royalties on gold properties located in the Americas. The Company's diversified portfolio consists of approximately 221 royalties located in mining jurisdictions throughout the Americas, producing, developing, advanced-exploration and early-exploration staged properties. Its royalties include Isabella Pearl, Granite Creek, Edna Mountain, Bald Mountain, Hammond Reef South, Princesse Annie, Hunter Mine Group, Entre Deux Lacs, Calamity, Winnie Lake, Perestroika Ouest, Lac Lemoyne, Harricana Fault, Blue Mountain, Bejopipa, Bench Depth, Amikougami, Aquilon, Casault, Des Meloizes, Fancamp, and among others.

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Post by flashcashon Sep 07, 2021 8:32am

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News

Just gets bigger.

2021-09-07 08:03 ET - News Release

Vancouver, British Columbia and Val-d'Or, Qubec--(Newsfile Corp. - September 7, 2021) - Gold Royalty Corp. ("Gold Royalty") (NYSE American: GROY), Abitibi Royalties Inc. ("Abitibi Royalties") (TSXV: RZZ) (OTC PINK: ATBYF) and Golden Valley Mines and Royalties Ltd. ("Golden Valley") (TSXV: GZZ) (OTCQX: GLVMF) are pleased to announce that they have entered into definitive agreements (the "Agreements") dated September 6, 2021, pursuant to which Gold Royalty will acquire all of the issued and outstanding common shares of each of Abitibi Royalties and Golden Valley by way of statutory plans of arrangement (the "Arrangements").

Under the terms of the Agreement with Abitibi Royalties, which was negotiated at arms-length, each holder of the common shares of Abitibi Royalties (each, an "Abitibi Royalties Share") will receive 4.6119 Gold Royalty common shares (each, a "Gold Royalty Share") for each Abitibi Royalties Share held. Such share exchange ratio implies consideration of C$25.33 per Abitibi Royalties Share and a premium of approximately 22%^[1] to Abitibi Royalties shareholders based on the 20-day volume weighted average price of the Gold Royalty Shares and Abitibi Royalties Shares ending on September 3, 2021.

Under the terms of the Arrangement with Golden Valley, which was negotiated at arms-length, each holder of the common shares of Golden Valley (each, a "Golden Valley Share") will receive 2.1417 Gold Royalty Shares for each Golden Valley Share held. Such share exchange ratio implies consideration of C$11.76 per Golden Valley Share and a premium of approximately 86%¹ to Golden Valley shareholders based on the 20-day volume weighted average price of the Gold Royalty Shares and Golden Valley Shares ending on September 3, 2021. The consideration for the Golden Valley Shares reflects Golden Valley's ownership in Abitibi Royalties plus the additional value of its other assets.

At closing, existing Gold Royalty, Abitibi Royalties (excluding Golden Valley's ownership in Abitibi Royalties) and Golden Valley shareholders will own approximately 54%, 23% and 23%, respectively, of Gold Royalty after giving effect to the Arrangement ("GRC") on a fully diluted and in-the-money basis.

Transaction Highlights

Balanced Portfolio with 191 Royalties Across Cash Flowing, Development and Exploration Assets (Schedule A): Well-balanced, diversified and peer-leading portfolio of royalties with current cash flow generation and further growth potential, including:
- Cash-Flowing: Six royalties owned on operating mines with additional immediate cash generation potential from current investments.
- Near-Term Cash Flow: Royalties in production expected to more than double with seven mines currently under development based on the respective operators' disclosed plans.
- Development: 14 Feasibility / PEA stage royalties and 15 resource stage royalties.
- Exploration: 12 key exploration royalties and 137 early stage exploration royalties.
Cornerstone Royalty on a Portion of Canada's Largest Gold Mine, Canadian Malartic: Coveted exposure to portions of Canada's largest producing gold mine, Canadian Malartic. With significant resource and reserve estimates, premier operators, and a multi-decade mine life, Canadian Malartic is widely regarded as a world-class mine. The Odyssey underground mine will become a significant cash flow generator for the combined company.
Multiple Avenues for Expected Growth (Cash Flow, Exploration, Royalty Generator Model): Royalty portfolio expected to drive year-over-year cash flow growth. GRC to leverage unique royalty generator model with a track record of success at Ely Gold and Golden Valley to facilitate organic growth.
Premier Operating Partners with Americas Focus (Concentration in Nevada and Qubec): Increased diversity of the combined company's mining operators, with over 15 key operators ranging in scale from senior gold mining companies to junior developers and concentrated in premier jurisdictions such as Nevada and Qubec.
Strong Balance Sheet and No Debt: The combined company is expected to have $47 million in cash and marketable securities and no debt^[2].
Experienced Management Team with Track Record of Creating Value: With a balance of technical and capital markets experience, GRC will continue to be led by a highly credible and established management team with a track record of creating value and sourcing accretive transactions.
Path to Re-Rate Through Increased Scale, Asset Quality and Precious Metals Focus: Potential share price re-rate through increased operating scale, royalty portfolio diversification, capital markets presence, increased trading liquidity and greater support from institutional investors.