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Val-d'Or Mining Announces Closing of Follow on Agreement for Strategic Partnership with Gold Royalty Corp.
Val-d'Or, Quebec--(Newsfile Corp. - April 21, 2023) - Val-d'Or Mining Corporation (TSXV: VZZ) ("V...
About this update from Val-d'or Mining Corporation
[{"type":"text","content":"Val-d'Or Mining Announces Closing of Follow on Agreement for Strategic Partnership with Gold Royalty Corp.Val-d'Or, Quebec--(Newsfile Corp. - April 21, 2023) - Val-d'Or Mining Corporation (TSXV: VZZ) (\"Val-d'Or Mining\" or the \"Company\") is pleased to announce that further to the Company's news release of March 10, 2023, it has now closed the transactions contemplated by the letter agreement dated March 9, 2023 (the “Agreement”) with  Gold Royalty Corp.’s wholly owned subsidiary, Golden Valley Abitibi Royalties Ltd. (“Abitibi” which, together with Gold Royalty Corp., is referred to as \"Gold Royalty\").The Company has purchased from Gold Royalty the mineral rights and interests in the Upper Red Lake property located in Northern Ontario in consideration for which the Company has granted to Gold Royalty a net smelter return royalty of 1.0% on the Upper Red Lake property (the \"Royalty\"). No cash or equity consideration was paid for the Upper Red Lake property acquired by the Company. The Company will pay to Gold Royalty 20% of any future consideration received by the Company (the \"20% Consideration\"), consisting of cash, shares or other securities of any entity received by the Company from a third party in consideration for any interest in, or otherwise in relation to, the Upper Red Lake property, pursuant to any transaction, agreement or other arrangement entered into, agreed to or announced by the Company on or before March 21, 2024 in relation to such property.Gold Royalty holds 28,965,050 shares in the capital of the Company, representing 35.6% of its issued share capital, and accordingly is an insider of the Company in accordance with applicable securities legislation. The transaction discussed herein therefore constitutes a \"related party transaction\" under Multilateral Instrument 61-101 (\"MI 61-101\"). The Company availed itself of the exemptions contained in section 5.5(a) of MI 6-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101. The Company availed itself of these exemptions on the basis that neither the fair market value of the Upper Red Lake property, nor the fair market value of the consideration paid by the Company to the Gold Royalty for su...