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.
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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.
