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September 8, 2021

Gold Royalty to acquire Abitibi Royalties and Golden Valley

Each shareholder of Abitibi and Golden Valley will receive 4.6119 and 2.1417 of Gold Royalty shares, respectively.

Canada-based Gold Royalty has agreed to acquire all issued and outstanding shares of Abitibi Royalties and Golden Valley Mines & Royalties.

The deal is aimed at creating a leading growth and Americas-focused precious metals royalty company.

According to the agreement with Abitibi Royalties , Gold Royalty will issue 4.6119 of its common shares to each Abitibi Royalties ’ shareholder.

The company will purchase Golden Valley by issuing 2.1417 Gold Royalty shares to each of its shareholders.

Gold Royalty said that the consideration for Golden Valley shares reflects the latter’s ownership in Abitibi Royalties and the additional value of its other assets.

Upon completion of the transactions, existing Gold Royalty , Abitibi Royalties and Golden Valley shareholders will own stakes of approximately 54%, 23% and 23%, respectively, in Gold Royalty . This excludes Golden Valley’s ownership in Abitibi Royalties .

Gold Royalty CEO, president and chairman David Garofalo said that the firm will have a significant presence in Québec and Nevada, two of the world’s most favoured mining region.

Garofalo said: “The acquisition of Golden Valley and Abitibi Royalties represents a very compelling extension of our strategy by adding royalties over the world-class Canadian Malartic mine – a generational asset that will continue to deliver gold production for decades to come.

“This business combination also provides a strong balance of asset quality, scale, financial strength and management to drive significant growth and to deliver further potential upside through a significant value re-rating to the benefit of all our stakeholders.”

Expected to have $47m in cash and marketable securities and no debt, the combined firm will offer exposure to portions of Canada’s largest producing gold mine, Canadian Malartic.

Following review, the Abitibi Royalties and Golden Valley boards have approved the agreements and recommend that their respective shareholders vote in favour.

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