Gold Royalty Acquires Ely Gold For $84 Million, 30.9 Million Shares

Gold Royalty Corp. (NYSE: GROY) this morning announced the completion of the business combination between the company and Ely Gold Royalties Inc. (TSXV: ELY). The acquisition is reported to be for an aggregate consideration of $84 million in cash and 30.9 million Gold Royalty shares.

Under the terms of the transaction, Gold Royalty acquired 100% equity of Ely Gold, making it an indirect subsidiary of the company. Each Ely Gold share held by shareholders who chose the share alternative of the transaction was exchanged for 0.2450 of a Gold Royalty share plus $0.0001. On the other hand, Ely Gold shareholders who elected to receive the cash alternative got 0.099166 of a Gold Royalty share plus $0.869053 for each Ely Gold share held.

Still pursuant to the agreement, each of the outstanding 15,946,732 warrants to purchase Ely Gold shares is still exercisable to acquire 0.2450 of a Gold Royalty share plus $0.0001 following the closing of the transaction.

“With four producing royalties, 57 royalties on development stage assets and 45 royalties on exploration stage assets, the acquisition of Ely Gold creates a leading Americas-focused precious metals royalty company,” stated Gold Royalty CEO David Garofalo.

As a result of the acquisition, Ely Gold CEO Trey Wasser was appointed to Gold Royalty’s board of directors. Trading of Ely Gold shares on the TSX Venture Exchange has also been halted since the announcement and the company relayed its plans to delist from the board “as soon as practicable”.

Gold Royalty last traded at US$4.22 on the NYSE.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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