Gold Royalty Corp. (NYSE: GROY) announced today that it has signed a definitive agreement to acquire gold royalty interests on the assets of Monarch Mining Corp. (TSX: GBAR). The acquisition is reported to be for consideration of $15 million.
The royalty firm is looking to acquire royalties on Monarch Mining properties worth $2.50 per tonne of material from Beaufor mine and processed through Beacon mill. The transaction also includes acquiring 2.5% net smelter return royalty on Croinor Gold, McKenzie Break, and Swanson properties, and 1.0% net smelter return royalty on Beaufor property.
The first $11.25 million of the acquisition price will be paid upon closing and the remaining $3.75 million will be paid six months after the transaction closes.
The transaction is expected to close on August 2021, subject to regulatory approvals and customary closing conditions.
Monarch Mining announced in June 2021 that it plans to reopen its wholly-owned Beaufor mine and Beacon mill by June 2022.
Gold Royalty last traded at US$5.01 on the NYSE while Monarch Mining last traded at $0.88 on the TSX.
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.