Business
Gold Royalty Announces Agreement to Acquire Royalty on Roxgold's Advanced-Stage Séguéla Project
Highlights: Gold Royalty Corp. ("GRC") has agreed to a acquire a 1.2% net smelter royalty ("NSR") royalty on the advanced-stage Séguéla Project for cash conside
About this update from Gold Royalty Corp.
[{"type":"text","content":" Highlights: Gold Royalty Corp. (\"GRC\") has agreed to a acquire a 1.2% net smelter royalty (\"NSR\") royalty on the advanced-stage Séguéla Project for cash consideration of approximately US$15.5 million subject to certain conditions. The transaction further diversifies and enhances GRC's royalty portfolio by adding an advanced-stage gold project located in Côte d'Ivoire and operated by Roxgold Inc. (\"Roxgold\"), a producer with experience advancing projects into production in the region. Gold Royalty Corp. considers Séguéla a highly prospective project with significant exploration potential. The project contains a Mineral Resource estimate of 1,044,000 ounces gold (12.8 million tonnes at 2.5 g/t gold) and 370,000 ounces gold (2.4 million tonnes at 4.8 g/t gold) in the Indicated and Inferred Mineral Resource categories, respectively (See table 1 below). VANCOUVER, BC, March 17, 2021 /CNW/ - Gold Royalty Corp. (the \"Company\" or \"GRC\") (NYSE American: GROY) is pleased to announce it has entered into an agreement to acquire a 1.2% net smelter return (\"NSR\") royalty on the Séguéla Project located in Côte d'Ivoire (the \"Agreement\"). David Garofalo, Chairman, President and CEO of GRC, commented: \"We are pleased to announce this acquisition, which represents an important milestone in the execution of our previously stated acquisition strategy and builds upon our recent successful initial public offering. The addition of an advanced-stage project to the GRC portfolio builds upon the significant resource base underlying our existing project portfolio. We are especially intrigued by the Séguéla opportunity given Roxgold's stated goal of commencing construction at Séguéla in 2021 and commissioning a mine in 2022.\" The Acquisition Pursuant to the Agreement, GRC has agreed to acquire a 1.2% NSR royalty on the Séguéla Project from a subsidiary of Apollo Consolidated Ltd. The purchase price payable by GRC at closing is AUD$20,000,000 (approximately US$15.5 million). The acquisition is conditional upon the satisfaction of customary closing conditions and the expiry of a 14-day right of first refusal held by the owner of the Séguéla Project. Subject to satisfaction of such conditions, GRC currently expects the transaction to close on or about April 1, 2021. The transaction will be financed by the Company through cash o...