Royal Gold (NASDAQ: RGLD) is acquiring Great Bear Royalties for C$200 million (US$154 million) in an all-cash deal.
The Great Bear Royalty was spun out from Great Bear Resources in 2020. Kinross Gold acquired Great Bear Royalty in 2021 for C$1.8 billion.
Royal Gold was mostly flat, up 0.16% today to $107.96 a share.
Announced today the companies said that the price represents a premium of 51.1% and 43.0% to the closing price and the 20-day volume-weighted average price, respectively, of Great Bear Royalties' shares on the TSX-V as at July 8, 2022.
John Robins, Great Bear Royalties chair, lauded the deal.
"The Great Bear saga represents one of the great Canadian gold discoveries of the past century. From the identification of a previously overlooked part of the Red Lake Camp and the application of best-in-class geoscience, the amount of value created for all stakeholders has been significant. The sale of Great Bear Royalties to Royal Gold is the culmination of value creation for our shareholders, and we very much look forward to following the development of the Great Bear Project."
