GOLD ROYALTY COMPLETES PREVIOUSLY ANNOUNCED ACQUISITION OF ROYALTY PORTFOLIO FROM NEVADA GOLD MINES

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.

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$27.5 million, which was satisfied through the issuance of 9,393,681 common shares to NGM at a deemed price of approximately US$2.93 per share.

About Gold Royalty Corp.

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.

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SOURCE Gold Royalty Corp.

FAQ

What royalties did Gold Royalty acquire from Nevada Gold Mines?

Gold Royalty acquired 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.

How much did Gold Royalty pay for the acquisition?

Gold Royalty paid US$27.5 million for the acquisition, satisfied through the issuance of shares.

What is the impact of the acquisition on Gold Royalty's shares?

The acquisition involved issuing 9,393,681 common shares, which could potentially dilute existing shareholders' stakes.

What is the strategic importance of this acquisition for Gold Royalty?

The acquisition expands Gold Royalty's portfolio, enhancing its revenue potential from established gold mines.