(Kitco News) - Gold Royalty (NYSE: GROY) announced yesterday that it has entered into an agreement with Nevada Gold Mines (NGM), a joint venture between Barrick (61.5%) and Newmont (38.5%), to acquire certain royalties on properties located in Nevada, USA.
The portfolio consists of a 10% Net Profits Interest royalty (NPI) on the high-grade, producing Granite Creek Mine operated by i-80 Gold, payable after 120,000 oz of gold or equivalent is cumulatively produced from the project; a 2.00% Net Smelter Return royalty (NSR) on the Bald Mountain Mine operated by Kinross Gold, payable after 10 million ounces of gold have been produced from the properties; and a 1.25% NSR on the Bald Mountain Joint Venture Zone also operated by Kinross.
The company said that the total share consideration is US$27,500,000, which will be satisfied through the issuance of 9,393,681 common shares of the company to NGM on closing.
Chairman and CEO David Garofalo commented, "We are excited to further expand our strong royalty position in Nevada, one of the best mining jurisdictions in the world, by acquiring a portfolio of high-quality royalties from NGM.
“Granite Creek commenced underground mining earlier this year and we are encouraged by the high-grade potential of the project to deliver significant returns in the future. The Bald Mountain royalties provide Gold Royalty exposure to exploration upside on one of the largest private mining land packages in the U.S. Additionally, this transaction further validates our business model and growth strategy as we welcome NGM as a significant Gold Royalty shareholder."
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 royalties on gold properties located in the Americas.
