The Creation of a Leading Gold Royalty Company

Gold Royalty Corp. (NYSE: GROY) has announced a transformative acquisition, creating what’s being called “a leading growth and Americas-focused precious metals royalty company.

Gold Royalty is acquiring Ely Gold Royalties, which is a Nevada-focused royalty company with assets in production and generating cash flow, for C$1.46 per share cash or 0.245 of a Gold Royalty share.

The new Gold Royalty Corp. will have a peer-leading resource endowment and a robust development pipeline, including nearly 100 royalties on various production, near-production, development and exploration assets.
 
 
 
Four of those royalties are already producing, including on First Majestic Silver’s Jerritt Canyon Mine, and will generate millions in cash flow this year, with others set to come online in the near term. 
 
 
David Garofalo is the CEO, President, and Chairman of Gold Royalty Corp. Prior to this role, he was head of Goldcorp when it was acquired by Newmont to create the world’s largest gold mining company. He sees re-rating potential in Gold Royalty shares once the deal is closed: 
 
 
"We are pleased to present this arrangement to the shareholders of Ely Gold and GRC. The acquisition of Ely Gold is consistent with our strategy of identifying opportunities to create shareholder value. Shareholders of New GRC will benefit through their participation in a larger, well-funded, and more diverse company that has the ability to acquire royalties in a variety of high-return projects globally. This transaction creates value for both Ely Gold and GRC shareholders – with the further potential upside through a significant value re-rating – and results in the immediate creation of a leading growth and Americas-focused precious metals royalty company."
 
Check out all the details of the transaction here.

When it’s complete, Gold Royalty (NYSE: GROY) should attract a “liquidity premium”. It will also have a fundamentally higher net asset value and high-quality and strategic portfolio of North American-focused gold royalties.

See our latest report on Gold Royalty Corp. here. 
 
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