The Great Bear story has come to a final close this morning, with the closing of a transaction between Royal Gold Inc (NASDQ: RGLD), and that of Great Bear Royalties (TSXV: GBRR). The previously announced acquisition has now formally closed, with the royalty associated with the well-known Dixie gold project now held by a subsidiary of Royal.
The transaction, first announced in July, saw Great Bear Royalties acquired in an all-cash deal that valued shares at $6.65 per each. Collectively, the royalty was acquired for C$200 million in cash, which at the time of announcement represented a 51.5% premium to the most recent closing price of the equity.
Great Bear is expected to be delisted from the TSX Venture on September 12 in connection with the acquisition, after which its new owners will apply for it to cease being a reporting issuer.
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The transaction follows the Great Bear project being acquired by Kinross Gold (TSX: K) in a $1.8 billion transaction that was announced in December and ultimately closed earlier this year. The purchase had lead Canaccord to speculate that Great Bear Royalties would be next to be acquired.
Great Bear Royalties currently holds a 2% net smelter return royalty on the Great Bear Dixie Project, which is expected to produce roughly 450,000 ounces on an annual basis, resulting in roughly 9,000 gold ounces for the royalty holder per annum.
Royal Gold last traded at $94.44 on the Nasdaq.
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.
