It appears the Great Bear namesake is about to leave Canadian capital markets for good. It was revealed this morning that Great Bear Royalties (TSXV: GBRR) has agreed to be acquired by a subsidiary of Royal Gold (NASDAQ: RGLD).
The acquisition is said to consist of an all-cash deal, with the firm as a whole to sell for $200 million, which equates to $6.65 per common share. The figure amounts to a premium of 51.5% to the closing price of the equity on Friday.
Great Bear Royalties’ principal asset is a 2% net smelter royalty held on the Great Bear Project that is now operated by Kinross Gold (TSX: K), following a major $1.8 billion acquisition that was announced late last year.
“After a thorough strategic review process, we are very pleased to provide this all-cash premium offer to our shareholders. [..] Following the acquisition of Great Bear Resources by Kinross Gold Corporation for approximately C$1.8 billion in early 2022, interest in Great Bear Royalties has been significant. We strongly support Royal Gold’s offer to acquire the Company and encourage all shareholders to do so as well,” commented CEO Calum Morrison.
The proposed acquisition is currently expected to close in the third quarter of 2022, subject to approval by two thirds of Great Bear Royalties shareholders, as well as court and regulatory approvals. A termination fee of $7.0 million, payable by Great bear Royalties, is also in play.
The acquisition follows speculation from Canaccord in late December that Great Bear Royalties would be one of the next firms to be bought-out following the acquisition of the project itself by Kinross.
Great Bear Royalties last traded at $4.40 on the TSX Venture.
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.
