Business
Gold Royalty Announces Amended and Upsized Revolving Credit Facility to Maximum $75 Million at Reduced Interest Cost and Extended Maturity and Provides an Update on Selected Portfolio Assets
VANCOUVER, BC, Feb. 24, 2025 /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, Feb. 24, 2025 /CNW/ - Gold Royalty Corp. (\"Gold Royalty\" or the \"Company\") (NYSE American: GROY) is pleased to announce that it has entered into an amendment agreement with the Bank of Montreal and the National Bank of Canada to amend and upsize its existing revolving credit facility (the \"Facility\"). The changes reduce Gold Royalty's borrowing costs and improve balance sheet flexibility. The amended and upsized Facility will bear a reduced interest rate based on SOFR plus a margin of 3.00%, reflecting a 100 basis points interest rate reduction. The Facility now consists of a US$30 million secured revolving credit line of which US$25 million is drawn, with an accordion feature allowing for up to an additional US$45 million in availability, subject to certain conditions. The maturity date of the Facility has been extended from March 31, 2027, to March 31, 2028. Andrew Gubbels, Chief Financial Officer, commented: \"We are pleased to announce the amendment of our revolving credit facility with the Bank of Montreal and National Bank of Canada. This amended and upsized Facility not only reduces the Company's borrowing costs, it also provides flexibility and prepares Gold Royalty for the future. While 2025 is expected to be a milestone year for free cash flow generation, driven by revenue growth from key catalysts across our portfolio along with sustained cost-reductions, our capital allocation initiatives through this year will continue to prioritize debt repayment to further strengthen our balance sheet.\" Gold Royalty is also pleased with recent positive progress from operating companies on assets on which it holds royalties or streams: Côté Gold (0.75% NSR, partial coverage) – IAMGOLD celebrated successful startup in its February 20, 2025 news release, noting \"The Côté Gold team had a very strong year, as the mine achieved among the quickest ramp-ups to commercial production for a large-scale open pit gold mine in Canada.\" It expects production at the mine to roughly double in 2025 to 360-400koz gold (100%), from 177koz gold (100%) in 2024. Vares (100% copper stream) – Adriatic Metals completed an A$80 million (approximately US$50 million) equity raise on February 18, 2025. In its announcement, Adriatic disclosed that it intends to use proceeds to complete the Vares ramp-up to its 800ktpa nameplat...