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Gold Royalty Provides Update on Proposed Acquisition

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Gold Royalty Corp. (NYSE American: GROY) announced that its agreement to acquire a 1.2% net smelter return royalty on the Séguéla Project has been terminated. The termination resulted from the project owner exercising a right of first refusal to acquire the royalty on matching terms. Despite this setback, the Company maintains a strong balance sheet, holding approximately US$90 million in cash and no debt as of March 30, 2021.

Positive
  • Strong balance sheet with approximately US$90 million in cash.
  • No debt as of March 30, 2021.
Negative
  • Termination of the acquisition agreement due to right of first refusal exercised by the project owner.

VANCOUVER, BC, March 31, 2021 /PRNewswire/ - Gold Royalty Corp. (the "Company) (NYSE American: GROY) today provided an update regarding its previously announced agreement (the "Agreement") to acquire a 1.2% net smelter return royalty on the Séguéla Project.

As disclosed in the Company's news release dated March 17, 2021, completion of the transaction was conditional on the expiry of a right of first refusal held by the owner of the project underlying the royalty. The Company has received notice that the project owner has exercised such right to acquire the royalty on matching terms and, as a result, the Agreement has been terminated.

The Company has a strong balance sheet, with approximately US$90 million in cash and no debt as of March 30, 2021.

About Gold Royalty Corp.

Gold Royalty Corp. 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. The Company's diversified portfolio currently consists of net smelter return royalties ranging from 0.5% to 2.0% on 18 gold properties covering 12 projects located in the Americas.

Cision View original content:http://www.prnewswire.com/news-releases/gold-royalty-provides-update-on-proposed-acquisition-301259924.html

SOURCE Gold Royalty Corp.

FAQ

What happened to Gold Royalty Corp.'s acquisition of the Séguéla Project?

The acquisition agreement for a 1.2% net smelter return royalty on the Séguéla Project was terminated because the project owner exercised its right of first refusal.

What is Gold Royalty Corp.'s current financial status?

Gold Royalty Corp. has a strong balance sheet with approximately US$90 million in cash and no debt as of March 30, 2021.

When was the acquisition agreement for the Séguéla Project terminated?

The acquisition agreement was terminated on March 31, 2021.

What is a net smelter return royalty?

A net smelter return royalty is a percentage of the revenue generated from the sale of minerals extracted from a mining project, minus certain allowable costs.

Gold Royalty Corp.

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