Business
Gold Royalty Announces Acquisition of Royalties on Producing Assets From Nevada Gold Mines; Welcomes Nevada Gold Mines as Major Shareholder
VANCOUVER, BC, Sept. 1, 2022 /CNW/ - Gold Royalty Corp. ("Gold Royalty" or the "Company") (NYSE American: GROY) is pleased to announce that it has entered into
About this update from Gold Royalty Corp.
[{"type":"text","content":" VANCOUVER, BC, Sept. 1, 2022 /CNW/ - Gold Royalty Corp. (\"Gold Royalty\" or the \"Company\") (NYSE American: GROY) is pleased to announce that it has entered into an agreement (the \"Agreement\") with Nevada Gold Mines LLC (\"NGM\"), a joint venture between Barrick Gold Corporation (61.5%) and Newmont Corporation (38.5%), to acquire the following royalties on properties located in Nevada for total share consideration of US$27,500,000, which will be satisfied through the issuance of 9,393,681 common shares of the Company to NGM on closing: a 10% Net Profits Interest royalty (\"NPI\") on the high-grade, producing Granite Creek Mine (\"Granite Creek\") operated by i-80 Gold Corp. (\"i-80\"), payable after 120,000 oz of gold or equivalent is cumulatively produced from the project; a 2.00% Net Smelter Return royalty (\"NSR\") on the Bald Mountain Mine (\"Bald Mountain\") 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 (\"JV Zone\") also operated by Kinross. David Garofalo, Chairman and CEO of Gold Royalty, commented, \"We are excited to further expand our strong royalty position in Nevada, one of the best mining jurisdictions in the world, by acquiring a portfolio of high-quality royalties from NGM. Granite Creek commenced underground mining earlier this year and we are encouraged by the high-grade potential of the project to deliver significant returns in the future. The Bald Mountain royalties provide Gold Royalty exposure to exploration upside on one of the largest private mining land packages in the U.S. Additionally, this transaction further validates our business model and growth strategy as we welcome NGM as a significant Gold Royalty shareholder.\" Royalty Summary Granite Creek The Granite Creek Mine is located in Nevada at the intersection of the Getchell and Battle Mountain Trends proximal to Nevada Gold Mines' Twin Creeks and Turquoise Ridge mining operations. The mine hosts both high grade open pit and underground mineral resources that remain open for expansion. The underground mine is permitted with development and test mining underway as part of the planned ramp-up of production activities. Permitting work for construction of an open pit mine (heap leach) is ongoing. In it...