Business
Gold Royalty Announces Acquisition of Additional Borborema Royalty
Gold Royalty Corp. ("Gold Royalty" or the "Company") (NYSE American: GROY) is pleased to announce that it has entered into an agreement to acquire a net smelter royalty (the "Royalty") on the Borborema gold mine and property ("Borborema Project") from Dundee Corporation ("Dundee") for total consideration of US$45 million, comprised of US$30 million in cash and 3,571,429 newly issued common shares of the Company based on a 20-day VWAP of US$4.20.
About this update from Gold Royalty Corp.
[{"type":"text","content":"VANCOUVER, BC, Jan. 14, 2026 /CNW/ - Gold Royalty Corp. ("Gold Royalty" or the "Company") (NYSE American: GROY) is pleased to announce that it has entered into an agreement to acquire a net smelter royalty (the "Royalty") on the Borborema gold mine and property ("Borborema Project") from Dundee Corporation ("Dundee") for total consideration of US$45 million, comprised of US$30 million in cash and 3,571,429 newly issued common shares of the Company based on a 20-day VWAP of US$4.20.","length":561,"tagName":"p"},{"type":"text","content":"The Royalty applies to the Borborema Project, operated by Aura Minerals Inc. ("Aura Minerals"). The Royalty rate is 1.5% of net smelter returns on the first 1.5 million ounces ("Moz") of payable gold production and 1.0% until 2.0 Moz of payable gold is produced (thereafter nil).","length":299,"tagName":"p"},{"type":"text","content":"The transaction is subject to customary conditions and is currently expected to be completed in January 2026. Taurus Mining Royalty Fund, L.P. ("Taurus") has notified the Company that it wishes to participate in this investment under the previously announced mutual cooperation agreement between the parties. Taurus intends to acquire an economic interest to one-half of the Royalty acquired under the transaction for US$22.5 million in cash. Taurus' participation is subject to, among other things, completion of the proposed acquisition and finalizing a definitive participation agreement and other customary conditions.","length":636,"tagName":"p"},{"type":"text","content":"This additional Borborema Royalty will complement the Company's existing royalty on the Borborema gold mine which consists of a 2.0% NSR, subject to a stepdown to a 0.5% NSR after 725,000 ounces of payable gold is produced at the mine. The existing royalty is also subject to the operator's buyback after the earlier of 2.25 Moz payable gold are produced, or the year 2050. Gold Royalty also has an option to receive an additional 0.5% NSR on the Borborema gold mine on repayment of its gold-linked loan, subject to similar buyback rights of the operator.","length":563,"tagName":"p"},{"type":"text","content":"David Garofalo, Chairman and Chief Executive Officer of Gold Royalty stated: "Our ...