Business
Gold Royalty, Abitibi Royalties & Golden Valley to Combine to Create a Leading Growth and Americas-Focused Precious Metals Royalty Company
VANCOUVER, BC and VAL-D'OR, QC, Sept. 7, 2021 /CNW/ - Gold Royalty Corp. ("Gold Royalty") (NYSE American: GROY), Abitibi Royalties Inc. ("Abitibi Royalties") (T
About this update from Gold Royalty Corp.
[{"type":"text","content":" VANCOUVER, BC and VAL-D'OR, QC, Sept. 7, 2021 /CNW/ - Gold Royalty Corp. (\"Gold Royalty\") (NYSE American: GROY), Abitibi Royalties Inc. (\"Abitibi Royalties\") (TSX-V: RZZ, OTC-Nasdaq Intl: ATBYF) and Golden Valley Mines and Royalties Ltd. (\"Golden Valley\") (TSX-V: GZZ, OTC QX: 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. ____________________________ 1 Spot exchange rate on September 3, 2021 of 1.2513 Canadian dollars per U.S. dollar. Transaction Highlights Balanced Portfolio wit...