Business
Star Royalties Announces Strategic Investment by Agnico Eagle into Green Star Royalties
TORONTO, ON / ACCESSWIRE / March 31, 2022 / Star Royalties Ltd. (the " Company " or " Star R...
About this update from Star Royalties Ltd
[{"type":"text","content":"Star Royalties Announces Strategic Investment by Agnico Eagle into Green Star RoyaltiesTORONTO, ON / ACCESSWIRE / March 31, 2022 / Star Royalties Ltd. (the \"Company\" or \"Star Royalties\") (TSX-V:STRR)(OTCQX:STRFF) is pleased to announce a non-brokered private placement (the \"Private Placement\") of 15,384,620 common shares (\"Green Star Shares\") of its subsidiary, Green Star Royalties Ltd. (\"Green Star Royalties\"), at a price of C$1.00 per Green Star Share. Agnico Eagle Mines Limited (\"Agnico Eagle\") (AEM) has agreed to purchase 14,134,620 Green Star Shares for an aggregate purchase price of C$14.13 million. The Company's management team and Board of Directors (collectively, \"Management\") have agreed to purchase concurrently the remaining 1,250,000 Green Star Shares in the Private Placement for an aggregate purchase price of C$1.25 million.Upon completion of the Private Placement, Green Star Royalties will have approximately 40.4 million Green Star Shares issued and outstanding, which will be owned in the approximate amounts as follows: 61.9% by Star Royalties, 35% by Agnico Eagle and 3.1% by Management.The Private Placement is expected to close in April 2022 and is subject to certain closing conditions, including (i) the receipt of all necessary approvals of the TSX Venture Exchange, (ii) the satisfactory completion of due diligence by Agnico Eagle, (iii) the negotiation of a unanimous shareholders agreement among the shareholders of Green Star Royalties and a co-investment agreement pursuant to which Agnico Eagle will have the right to co-invest with Green Star Royalties in green projects, and (iv) the entering into of a management agreement between Green Star Royalties and Star Royalties.Investment HighlightsCornerstone shareholder: Agnico Eagle, a senior Canadian gold mining company, will become a 35% shareholder of Green Star Royalties and have certain rights to co-invest alongside Green Star Royalties.Significant recognition of value: The Private Placement values the Company's 61.9% ownership of Green Star Royalties at C$25 million.Pathway to grow Green Star Royalties: The Private Placement is expected to accelerate the Company's ability to pursue larger green opportunities and to establish a substantial pure-green royalty company that should attract capital from both generalist and ESG-focused investors.Alex Pe...