Gold Royalty has signed an agreement to acquire an existing royalty on the Pedra Branca mine from BlackRock World Mining Trust for $70m (C$96.65m) in cash.
The Pedra Branca mine is an operating copper-gold mine in Pará state, Brazil, currently owned and operated by a BHP Group subsidiary.
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It is situated in Água Azul do Norte, approximately 160km from Marabá and 900km from Belém.
In August 2025, BHP announced it would sell the Pedra Branca mine, along with its additional assets in the Carajás region, to CoreX Holding.
This transaction is expected to close once the customary closing conditions are satisfied.
For the 12 months ended 30 June 2025, approximately $7.9m in royalty expense was paid to the previous royalty holder, equivalent to around 2,800 gold equivalent ounces at an average gold price of $2,811/oz.
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By GlobalDataUpon completion of the acquisition, the royalty is anticipated to add meaningful cash flow to Gold Royalty, supported by the current gold pricing climate.
The terms of the royalty include a 25% net smelter return (NSR) royalty on gold and a 2% NSR on copper produced from Pedra Branca.
This structure is said to increase Gold Royalty’s exposure to both gold and copper from a revenue and asset value perspective.
Gold Royalty chairman and CEO David Garofalo said: “We are pleased to announce another significant addition to our portfolio. The acquisition of the Pedra Branca royalty represents an immediate and material addition to our cash flows. On completion, our portfolio of high-quality assets will include eight cash flowing assets and a deep pipeline of over 250 royalty and streaming interests.”
The company’s royalty structure covers the Pedra Branca East and West deposits in full, with no step-down options.
This ensures full exposure to the asset’s long-term optionality.
The Pedra Branca East underground copper-gold operation began production in 2020, with an approximate mining rate of 800,000 tonnes per annum, under OZ Minerals.
Following BHP’s acquisition of OZ Minerals in 2023, BHP has extended the mine life and reported increases in the mine’s mineral resources and ore reserves, as disclosed in its annual report for the year ended 30 June 2025.
Gold Royalty is a gold-focused royalty company that provides flexible financing solutions to the metals and mining sector.
Its diversified portfolio is centred on NSR royalties tied to gold projects, with assets predominantly located across the Americas.
