Business
Gold Royalty Announces Acquisition of Royalty Over Capstone's Producing Copper-Silver Cozamin Mine
VANCOUVER, BC, July 31, 2023 /CNW/ - Gold Royalty Corp. (NYSE American: GROY) ("Gold Royalty" or the "Company") is pleased to announce that it has entered into
About this update from Gold Royalty Corp.
[{"type":"text","content":" VANCOUVER, BC, July 31, 2023 /CNW/ - Gold Royalty Corp. (NYSE American: GROY) (\"Gold Royalty\" or the \"Company\") is pleased to announce that it has entered into an agreement (the \"Agreement\") to acquire an existing 1.0% net smelter return (\"NSR\") royalty (the \"Royalty\") from Endeavour Silver Corp. (\"Endeavour\") on portions of the Cozamin Copper-Silver Mine, located in Zacatecas, Mexico, (\"Cozamin\") for total cash consideration of US$7.5 million. Cozamin is owned and operated by Capstone Copper Corp. (\"Capstone\"). The Company also announces that it expects that, with the completion of the proposed acquisition, its board of directors will suspend dividends under its previously announced dividend program to focus capital on executing its strategic priority of growing cash flow and net asset value per share through accretive acquisitions. David Garofalo, Chairman and CEO of Gold Royalty commented, \"The acquisition of the Cozamin royalty brings immediate cash flow, complementing our peer-leading revenue growth rate from our portfolio of high-quality, long-life North American assets. Capstone is an experienced and proven operator and we are excited to see them continue to deliver strong operating and exploration results at Cozamin for years to come. We currently expect to be generating positive free cash flow in 2024 with, among other things, the addition of Cozamin, the Côté Gold Project on track to enter production early next year, and corporate overhead costs continuing to decrease.\" Acquisition Highlights: Cozamin is an established, low-cost operating copper-silver mine which has been in production since 2006 and has a history of exploration success and mine life extensions; The Royalty generated revenue of over US$1.0 million over the last year and is expected to add meaningful cash flow to Gold Royalty going forward, along with leverage to increasing copper and silver prices during the life of mine; Capstone published an updated National Instrument I 43-101 (\"NI 43-101\") technical report for Cozamin in May 2023 which outlined a life of mine plan extending to 2030 based only on mineral reserves1; The Royalty covers two concessions over the Calicanto vein at Cozamin. As part of the transaction, Gold Royalty has been granted the option to acquire additional royalties on five contiguous concessions to ...