Great Bear Resources Ltd. GTBAF

Great Bear Royalties

[dvgelder]

Hi guys, this is my first experience with a company that has rolled out a royalties subsidiary. Can someone explain to me how it is expected to work? I've owned common shares in GBR since last June, well before the cut off date in the roll out. As I understand it, the shares in great bear royalties wont be listed on an exchange - how does one get access to them in this situation?

Thanks!

[IvanHoe86]

Royalties may or may not, be listed on the exchange, could very well be bought by a royalty etf or remain OTC or private. The NSR will entitle the ENTIRE lot of spinoff shares to be worth 2% of the future cashflows once GBR is sold/someone starts producing the gold on this property. So 45-50mm(SO) / 4(spinco shares) x   GBR value at time of sale/mining Im assuming very roughly. This is

[lumpy13]

Altho not tradable, they should be rflfected in your brokerage account (they are at my Schwab acct). As noted, by IvanHoe, they could be used by GBR as a bargaining chip with a potential acquirer, including them if the price is right and excluding them, if not.  They should have increasing intereet for a royalty/streaming company.   Just enjoy the ride.

[vestor111]

I am not sure how GBR would leverage what is now not theirs to bargain with.  The rights and ownership have been distributed to the shareholders.   Any deal or interest in aquisition of the royalty company would have to be legally tendered to the shareholders.    This could be viewed as a long term annuity unless an offer is tendered and agreed to.  This would be done

[vestor111]

BTW The annuity is geared almost 100% to the POG.   So if you believe, like many, that all of this money printing and debt buying...ie magic money nonsense will be reflected in the POG being repriced at some point, then the GB Royalty shares will potentially have an absolutely incredible yield over time.   I am glad they are not yet tradable...because I plan to hold on tight to these

[Ivorygull]

You are right vestor111, because Chris organized the spinco so that the shareholders would have something to look forward to, to still have some type of 'ownership' in the gold that is pulled out of there. So he wouldn't have set it up to be bought out or to be used as leverage, because that would defeat what he envisioed for himself and all of us other shareholders.

[lumpy13]

A potential acquirer has two options:  1) buying the GBR shares and 2) buying the GBR and Royalty shares.   Shareholders have to approve either option so it's just a question of the price.   Still, it's a smart move by Chris, leaving shareholders a residual royalty if the acquisition price isn't sufficient.

[amxjavelin]

I agree this is a geat move by MM  GBR is the next eskay creek in my opinion or much bigger?

[Ivorygull]

lumpy13, I don't believe that Chris is leaving us a residual royalty in case the acquisition price isn't sufficient, he is getting that for us regardless of the price, even if it is massive. IMO, he wants all shareholders to enjoy this long after we are taken over, and has/had no intention of using it as leverage, otherwise he would probably have had it at a higher percentage with a