Business
Gold Royalty Continues Sector-Leading Growth Trajectory and Plans for a Mutually Beneficial Acquisition of Elemental Royalties
VANCOUVER, BC, Jan. 31, 2022 /CNW/ - Gold Royalty Corp. (NYSE American: GROY) ("Gold Royalty", or the "Company") is pleased to provide an update on its growth p
About this update from Gold Royalty Corp.
[{"type":"text","content":" VANCOUVER, BC, Jan. 31, 2022 /CNW/ - Gold Royalty Corp. (NYSE American: GROY) (\"Gold Royalty\", or the \"Company\") is pleased to provide an update on its growth plans, and its proposed acquisition of Elemental Royalties Corp. (TSXV: ELE) (\"Elemental\"). Continuing its trajectory of disciplined expansion and growth over the past year, Gold Royalty has offered to acquire all of the issued and outstanding Elemental common shares (the \"Elemental Shares\") for consideration of 0.27 of a Gold Royalty common share (a \"Gold Royalty Share\") per Elemental Share (the \"Offer\") as set forth in Gold Royalty's Offer and Circular dated January 11, 2022 (the \"Offer and Circular\"). \"The acquisition of Elemental will be the fourth corporate transaction undertaken by Gold Royalty within the last 12 months, representing an unprecedented pace of accretive growth and resulting in a diverse and well-balanced portfolio of high-quality precious metal royalty assets with peer-leading growth. Since our oversubscribed US$90 million initial public offering in March 2021, we have successfully acquired Ely Gold Royalties, Abitibi Royalties and Golden Valley. Additionally, we declared our inaugural dividend, secured a flexibility-enhancing credit facility from the Bank of Montreal and achieved strong trading liquidity for our shareholders\", said David Garofalo, Chief Executive Officer and Chairman of Gold Royalty. \"We are excited to welcome Elemental shareholders into the Gold Royalty family and with the acquisition of Elemental's nine royalties, Gold Royalty will hold 200 royalties anchored by our existing gold-focused royalties in two of the best mining jurisdictions in the world, Quebec and Nevada. Our large, diversified portfolio will generate significant cash flows over a long life cycle, support future dividend growth, and position us to aggressively pursue acquisitions and further consolidation in the royalty sector, all for the benefit of our shareholders.\" Together, we believe Gold Royalty and Elemental will create value for all stakeholders through the following: Continued Growth – Gold Royalty possesses sector-leading growth driven by its existing royalty portfolio, with research analysts[1] estimating a compounded annual growth rate in revenue in excess of 60% over the next 3 years. Instead of incurring equity dilution in a highl...