Business
Royal Gold Completes Acquisition of Great Bear Royalties
DENVER / Sep 09, 2022 / Business Wire / Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) announced
About this update from Royal Gold, Inc.
[{"type":"text","content":"DENVER / Sep 09, 2022 / Business Wire / Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) announced today that its wholly owned subsidiaries, International Royalty Corporation (“IRC”) and 1370553 B.C. Ltd (“Newco”), have completed the previously announced plan of arrangement (the “Arrangement”) to acquire all of the issued and outstanding shares of Great Bear Royalties Corp. (“GBR”). “I am pleased to announce the closing of this friendly transaction with Great Bear Royalties Corp.,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “The acquisition provides Royal Gold exposure to Canada’s newest major gold discovery, the Great Bear Project, and furthers our strategic objective of acquiring quality, long lived assets with excellent operators in favorable jurisdictions.” Under the terms of the Arrangement, Newco paid cash consideration of C$6.65 for each GBR common share for aggregate consideration of approximately C$199.5 million (approximately US$152.2 million). The shares of GBR are expected to be delisted from the TSX Venture Exchange at the close of business on September 12, 2022. Following the delisting, Royal Gold intends to apply for GBR to cease to be a reporting issuer under applicable Canadian securities laws. Great Bear Royalty Details GBR’s sole material asset is a 2.0% net smelter return royalty (the “Royalty”) that covers the entirety of the Great Bear Project in the Red Lake district of Ontario, Canada, indirectly owned and operated by Kinross Gold Corporation (“Kinross”). The Royalty includes all metals produced from contiguous claims covering 9,140 hectares and will be registered on title to the relevant claims. Royalty payments will be made quarterly with applicable standard deductions. As part of IRC’s due diligence, IRC entered into a co-operation agreement with Kinross in May 2022, which provided IRC with access to Kinross personnel and certain non-public information pertaining to the Great Bear Project. Kinross subsequently provided a project update in June 2022, which included an in-depth overview of their work to date and plans for the project. In exchange for the information and access provided by Kinross under the co-operation agreement, IRC agreed that upon the acquisition of GBR, GBR would amend certain terms of the royalty agree...