Mike Fagan,
Editor
Sept. 8, 2021
Gold Royalty Corp. (NYSE-American: GROY) — currently trading around US$4.15 per share — has entered into a definitive agreement to acquire all of the issued and outstanding common shares of Abitibi Royalties (TSX-V: RZZ)(OTC: ATBYF) and Golden Valley Mines (TSX-V: GZZ)(OTC: GLVMF).
The proposed amalgamation will create a well-balanced and peer-leading portfolio for GROY of 191 royalties — a near 100% increase in royalty count — across cash-flowing, development, and exploration assets across the Americas.
Altogether, the focus remains primarily on Nevada, USA, and Quebec, Canada — two of the top mining jurisdictions in the world.
Gold Royalty president, David Garofalo, commented via press release:
"We are pleased to present this consolidation opportunity to the shareholders of Golden Valley, Abitibi Royalties and Gold Royalty that will firmly establish the combined company as the leading growth and Americas-focused precious metals royalty company. We will have a significant presence in Québec and Nevada, two of the most favoured mining regions worldwide. The acquisition of Golden Valley and Abitibi Royalties represents a very compelling extension of our strategy by adding royalties over the world class Canadian Malartic mine – a generational asset that will continue to deliver gold production for decades to come. This business combination also provides a strong balance of asset quality, scale, financial strength and management to drive significant growth and to deliver further potential upside through a significant value re-rating to the benefit of all our stakeholders."
The news follows GROY’s recently completed acquisition of Ely Gold Royalties, which brings with it royalties at Jerritt Canyon, Goldstrike, and Marigold — three of Nevada's largest gold mines — as well as the Fenelon mine in Quebec operated by Wallbridge Mining.
We’ve been covering Gold Royalty Corp. since it was initially spun out of GoldMining, Inc. (TSX: GOLD)(NYSE-American: GLDG) in March of this year — and it has since grown even larger by way of a string of accretive acquisitions in just the last few months.
Our own Gerardo Del Real of Junior Resource Monthly has been paying extra close attention to the precious metals royalty space this year with a primary focus on the junior gold royalty subsector.
In the current climate of consolidation across the broader gold market, this growth-by-acquisition model in the royalty space can prove highly valuable as scores of royalties can be acquired in rapid succession.
It’s a proven growth model that has seen similar royalty companies far exceed the market capitalization of their predecessor companies… and it’s precisely what we’re seeing emerge with Gold Royalty Corporation at this early stage.
Click here to access Gerardo’s video presentation to see how the top royalty players can oftentimes outperform even the best positioned gold exploration, development, and production companies while simultaneously reducing investor risk.
You can also access our feature report on Gold Royalty Corporation here.
Yours in profits,
Mike Fagan
Editor, Resource Stock Digest
Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest readers.