Business
Gold Royalty Corp. to Acquire Five Gold Royalties on Properties Managed by Monarch Mining Corporation
VANCOUVER, BC, July 23, 2021 /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, July 23, 2021 /CNW/ - Gold Royalty Corp. (\"Gold Royalty\" or the \"Company\") (NYSE American: GROY) is pleased to announce that it has entered into a definitive agreement (the \"Agreement\") with Monarch Mining Corporation (\"Monarch\") (TSX: GBAR) (OTCQX: GBARF) to acquire the following gold royalty interests (the \"Transaction\"): a C$2.50 per tonne royalty on material processed through Monarch's Beacon mill originating from the Beaufor mine operations; a 2.5% net smelter return (\"NSR\") royalty on each of Monarch's Croinor Gold, McKenzie Break and Swanson properties, each located in Quebec, Canada; and a 1% NSR on Monarch's Beaufor property, located in Quebec Canada (the \"Beaufor NSR\") held by Caisse de dépôt et placement du Québec, for total consideration of C$15 million (~US$12 million), of which C$11.25 million is payable on closing and C$3.75 million will be paid upon the 6-month anniversary of closing. The transaction is subject to customary conditions and is expected to close in August 2021. David Garofalo, CEO, President, and Chairman of Gold Royalty stated: \"We are excited to be partnering with Jean-Marc Lacoste and the strong technical team at Monarch to assist in the reopening of the Beaufor mine and to add additional high quality royalties to our portfolio. These assets will not only add potential near term cash flow to our Company, but also a strong pipeline of development and exploration projects located in Quebec, a very favourable mining jurisdiction. The Monarch royalties nicely complement the pro-forma portfolio of over 100 royalties in the Americas resulting from our previously announced acquisition of Ely Gold Royalties Inc. (\"ELY\") (TSX-V: ELY). It has been a very eventful start to our journey of growing into a leading royalty and streaming company. This announcement follows a string of exciting events for us and we are focused on driving continued success capitalizing on the experience and depth of our board and management team, strong balance sheet and capital markets presence.\" John Griffith, Chief Development Officer of Gold Royalty, stated: \"We are thrilled to be partnering with Monarch as they advance the proposed reopening of the Beaufor mine, which has a consolidated historical production in excess of 1 million ounces of gold and has strong exploration potential. ...