Mar 14 2013
Gold Royalties Corporation is pleased to announce that it has entered into a binding agreement to acquire a royalty asset (the "Asset"), represented by a 1% net smelter return royalty (the "NSR Royalty") on the Barry Gold Deposit (as detailed below) located approximately 190km northeast of Val d'Or, Québec (the "Transaction").
"Gold Royalties Corporation is pleased to continue our ongoing investment in Québec's mining sector. The very difficult equity markets mean that junior mining companies should continue to turn to capital partners like Gold Royalties Corporation to create mutually accretive opportunities. Based on our current assessment of Metanor Resource's publicly-stated resource around the Barry Gold Deposit, and confidence augmented by their delivery of cash to us involving their initial Bachelor Lake property, we expect this royalty to be highly-accretive; eventually yielding more than 7,500 ounces of gold to Gold Royalties Corporation at an all-in purchased and carried-to production cost of less than $75 per anticipated ounce. Today's transaction, which of course is subject to possible future upside from Metanor Resources' cash-flow funded property-level exploration, is exemplary of the significant positive return transactions that fellow shareholders should continue to expect from GRO's management team in an increasingly attractive capital-deployment environment," stated Ryan Kalt, President and Chief Executive Officer of Gold Royalties.
The Asset will be acquired from Kingston-based Murgor Resources Inc. (TSX VENTURE:MGR) ("Murgor Resources") for cash consideration of $450,000 (the "Purchase Price"). The Transaction is fully funded from treasury. Closing of the Transaction is expected to occur on or before March 22, 2013.