Business
Gold Royalty Enters into Additional Royalty Financing Agreement with Monarch Mining
VANCOUVER, BC, March 29, 2022 /CNW/ - Gold Royalty Corp. ("Gold Royalty" or the "Company") (NYSE: GROY) is pleased to announce that it has entered into a defini
About this update from Gold Royalty Corp.
[{"type":"text","content":" VANCOUVER, BC, March 29, 2022 /CNW/ - Gold Royalty Corp. (\"Gold Royalty\" or the \"Company\") (NYSE: 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 provide C$4.5 million in additional royalty financing by increasing the size of the Company's existing gold royalty interests. Gold Royalty will provide a further C$1.0 million in financing by participating in Monarch's C$12.0 million marketed private placement offering. The expanded royalties include: Increased Per Tonne Royalty (\"PTR\"): The existing C$2.50 PTR on material from the Beaufor Mine through the Beacon Mill will be increased to C$3.75/t on material from the Beaufor Mine and C$1.25/t on material from the McKenzie Break, Croinor Gold, and Swanson properties. Increased Net Smelter Return (\"NSR\") Royalties: The existing 2.50% NSR royalties on Monarch's McKenzie Break, Croinor Gold, and Swanson properties will be increased to a 2.75% NSR over the properties. Buyback Elimination: Monarch's existing 1.25% NSR royalty buyback rights on the McKenzie Break, Croinor Gold, and Swanson properties will be extinguished. Pre-emptive Rights: Gold Royalty will retain pre-emptive rights on any future PTR's on the Beacon Mill and will retain a right of first refusal (\"ROFR\") on the creation of any additional NSR properties over the McKenzie Break, Croinor Gold, and Swanson properties. David Garofalo, Chairman and CEO of Gold Royalty stated: \"We are excited to continue to support the team at Monarch as they work towards restarting production at Beaufor and the Beacon Mill. This acquisition further bolsters Gold Royalty's potential near-term cashflow with Monarch announcing that it expects to recommence production in June 2022. The buyback elimination and expanded NSR royalties to 2.75% over McKenzie Break, Croinor, and Swanson respectively, increase our exposure to high-potential exploration assets in tier-one jurisdictions, strengthening our already impressive long-term growth portfolio.\" The royalty properties are located near strategic infrastructure in the Abitibi region of Quebec, Canada and include: Beaufor Property / Beacon Mill – The Beaufor mine and Beacon mill are located approximately 20 kilometers east of Val-d'Or, Queb...