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Queen's Road Capital Announces US$30 Million Investment in Gold Royalty Corp.
Hong Kong, Hong Kong--(Newsfile Corp. - December 6, 2023) - Queen's Road Capital Investment Ltd....
About this update from Queen's Road Capital Investment Ltd.
[{"type":"text","content":"Queen's Road Capital Announces US$30 Million Investment in Gold Royalty Corp.Hong Kong, Hong Kong--(Newsfile Corp. - December 6, 2023) - Queen's Road Capital Investment Ltd. (TSX: QRC) (the \"Company\" or \"QRC\") is pleased to announce that it has entered into an agreement with Gold Royalty Corp. (\"Gold Royalty\") (NYSE American: GROY) whereby the Company will invest US$30,000,000 in a Gold Royalty convertible debenture.The convertible debenture will have a 5-year term, carry a 10.0% coupon (7.0% payable in cash and 3.0% payable in shares), a 3% establishment fee and will be convertible into Gold Royalty common shares at a price of US$1.88, representing a 30% premium to the 20-day volume weighted average share price of Gold Royalty prior to this announcement.Gold Royalty is one of the fastest growing precious metals focused royalty and streaming companies having aggressively grown its portfolio of royalties to over 240 assets in less than 3 years. The majority of the Gold Royalty portfolio is anchored in some of the best mining jurisdictions in the world: Quebec, Ontario and Nevada and its cornerstone royalties are on long-life assets operated by some of the largest global gold mining companies. Three of its key assets are: (a) a 3.0% NSR royalty on portions of the Canadian Malartic mine operated by Agnico Eagle in Quebec, (b) a 0.75% NSR royalty on portions of IAMGOLD's Côté Gold project located in Ontario, and (c) a 1.5% NSR plus a 3.5% NPI on Nevada Gold Mines' REN gold project in Nevada all of which assets are consistent with Queen's Road's focus on high quality orebodies in safe jurisdictions.The proceeds from the convertible debenture investment are expected to be used to fund Gold Royalty's US$21,000,000 acquisition of a 2.0% NSR on the Borborema gold project located in Brazil currently being developed by Aura Minerals Inc. (\"Aura Minerals\") and concurrent US$10,000,000 royalty-convertible gold-linked loan by Gold Royalty to Aura Minerals' subsidiary developing the Borborema gold project.This investment will increase QRC's convertible debenture portfolio to US$179 million, generating an average 9.2% coupon with record annual interest income of US$16.4 million, which will support future dividend payments to our shareholders.Warren Gilman, Chairman & CEO commented: \"QRC is pleased to partner with David Ga...