Mining News
Gold Royalty receives initial royalty payments on Newmont’s producing Borden gold mine in Ontario
(Kitco News) - Gold Royalty (NYSE: GROY) announced today that it has begun to receive royalty payments related to its Borden Lake net smelter return ("NSR") royalty over Newmont's producing Borden mine located in Ontario, Canada.
Ely Gold Royalties, a wholly owned subsidiary of Gold Royalty, originally purchased the royalty on May 6, 2020. The royalty included a five kilometer area of interest ("AOI") with a 0.50% NSR on certain claims within the AOI.
According to a press-release, it has now been confirmed that mining at the Borden mine is occurring on the AOI claims and therefore Newmont has begun making royalty payments under the AOI royalty.
Gold Royalty said it has received approximately $1.4 million in royalty back payments, adding that the AOI royalty has been registered on the mining licence with the Ministry of Mining in Ontario.
Chairman and CEO David Garofalo commented, "Borden brings another high-quality cash flowing asset into our portfolio. Along with the expected start of production at Beaufor this month, we will have eight royalties on producing assets and twenty assets in development supporting our industry leading revenue growth profile."
The Borden mine is operated by Newmont near Chapleau, Ontario as part of the larger Porcupine complex near Timmins. Newmont commenced production at Borden in late 2019 and the initial mine plan outlined a seven-year mine life extending to 2027 projecting over 100,000 ounces of annual production.
The royalty covers several unpatented claims including a claim over the southeast portion of the Borden underground mine workings. The royalty also covers prospective land between one and three kilometers to the northwest of the Borden mine.
Gold Royalty is a gold-focused royalty company offering creative financing solutions to the metals and mining industry. Gold Royalty's diversified portfolio currently consists primarily of net smelter return royalties on gold properties located in the Americas.
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