Gold Royalty Corp. (NYSE: GROY) this morning announced the signing of a commitment letter with the Bank of Montreal. The endeavor entails the financial institution to provide up to US$25 million revolving credit facility to the firm.
The gold-focused royalty company gets to secure a fully underwritten US$10 million revolving credit with an accordion feature for an additional US$15 million upon meeting certain undisclosed conditions.
“We are excited to have the support of BMO as this up to US$25 million facility strengthens our balance sheet and provides us with further financial flexibility as we continue to grow our already strong and well-diversified royalty portfolio,” said Gold Royalty Chief Financial Officer Josephine Man in a statement.
The credit facility is expected to close on September 30, 2021, and will mature on December 31, 2022. The firm said it intends to use the credit facility for acquisitions, investments, and general corporate purposes.
In August, the royalty company closed the acquisition of Ely Gold Royalties Inc. (TSXV: ELY) for an aggregate consideration of $84 million in cash and 30.9 million shares, and the acquisition of royalties on Monarch Mining Corp. (TSX: GBAR) properties for $15 million.
Gold Royalty last traded at US$4.35 on the NYSE.
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