VANCOUVER, BC, Feb. 24,
2025 /CNW/ - Gold Royalty Corp. ("Gold
Royalty" or the "Company") (NYSE American: GROY) is
pleased to announce that it has entered into an amendment agreement
with the Bank of Montreal and the
National Bank of Canada to amend
and upsize its existing revolving credit facility (the
"Facility"). The changes reduce Gold Royalty's borrowing
costs and improve balance sheet flexibility.
The amended and upsized Facility will bear a reduced interest
rate based on SOFR plus a margin of 3.00%, reflecting a 100 basis
points interest rate reduction. The Facility now consists of a
US$30 million secured revolving
credit line of which US$25
million is drawn, with an accordion feature allowing for up
to an additional US$45 million in
availability, subject to certain conditions. The maturity date of
the Facility has been extended from March
31, 2027, to March 31,
2028.
Andrew Gubbels, Chief Financial
Officer, commented: "We are pleased to announce the amendment of
our revolving credit facility with the Bank of Montreal and National Bank of Canada. This amended and upsized Facility not
only reduces the Company's borrowing costs, it also provides
flexibility and prepares Gold Royalty for the future. While 2025 is
expected to be a milestone year for free cash flow generation,
driven by revenue growth from key catalysts across our portfolio
along with sustained cost-reductions, our capital allocation
initiatives through this year will continue to prioritize debt
repayment to further strengthen our balance sheet."
Gold Royalty is also pleased with recent positive progress from
operating companies on assets on which it holds royalties or
streams:
- Côté Gold (0.75% NSR, partial coverage) – IAMGOLD
celebrated successful startup in its February 20, 2025 news release, noting "The Côté
Gold team had a very strong year, as the mine achieved among the
quickest ramp-ups to commercial production for a large-scale open
pit gold mine in Canada." It
expects production at the mine to roughly double in 2025 to
360-400koz gold (100%), from 177koz gold (100%) in 2024.
- Vares (100% copper stream) – Adriatic Metals completed
an A$80 million (approximately
US$50 million) equity raise on
February 18, 2025. In its
announcement, Adriatic disclosed that it intends to use proceeds to
complete the Vares ramp-up to its 800ktpa nameplate capacity in the
first half of 2025 and secure long-lead items to fast-track its
expansion of the Vares Processing Plant. Adriatic disclosed that it
is now fully funded to upgrade the plant to 1Mtpa (+25%) by 2026
and to 1.3Mtpa (+63%), expected to be completed in 2027.
- Odyssey (0.5% - 3.0% NSR, partial coverage) – Agnico
Eagle reported on February 13,
2025 that the shaft sinking project at Odyssey remains on
schedule and transition to mining from the shaft is expected to be
completed in 2029. It expects to update the market in 2026 on
results of an internal study on construction of a second shaft. The
second shaft project could be a material positive to Gold Royalty
if the shaft and associated mining activity is located within its
royalty coverage.
- REN (1.5% NSR & 3.5% NPI) – Barrick disclosed on
page 42 in its Management's Discussion and Analysis for the year
ended December 31, 2024 that work
continues at the REN project, the underground extension of the
Goldstrike Mine along the Carlin Trend in Nevada, USA. Twin decline development has
started, and the ventilation shaft surface pad and utilities were
completed in advance of shaft sinking activities which are expected
to begin this quarter. Barrick now expects that REN will be in full
production in 2027, with anticipated average production of 140,000
oz gold per year on a 100% basis.
- Tonopah West (3.0% NSR) – Blackrock
Silver announced on January 30,
2025 that it completed a C$13.8
million bought deal public offering. The net proceeds from
the offering are expected by it to be used to advance exploration
and development at the Tonopah West project, for working capital
and for general corporate purposes. On February 18, 2025, Blackrock Silver announced
that contractors have been selected to guide the company through
the permitting process. It expects to complete an updated mineral
resource estimate for the project in the third quarter of 2025,
with an updated preliminary economic assessment (PEA) by the second
quarter of 2026, and construction on an exploration decline
potentially commencing in 2027.
- Borden (0.5% NSR, partial
coverage) – Discovery Silver announced on
January 27, 2025 that it will acquire
Newmont's Porcupine complex, including the Borden operation. An updated PEA was posted on
January 28, 2025 and is available
under its profile at www.sedarplus.ca. The transaction is expected
to close in the first half of 2025.
- Fenelon (2.0% NSR) – Wallbridge Mining reported on
January 22, 2025 that it intends to
complete an updated PEA on the Fenelon project in the current
quarter. The assessment will include a phased approach involving a
lower initial production rate to reduce up front capital and
operating costs.
- South Railroad (0.44% NSR, partial coverage) – Orla
Mining reported on January 16,
2025 that it will focus on advancing permitting and project
development on South Railroad in 2025.
- Borborema (2.0% NSR) – Aura Minerals announced on
January 10, 2025 that it had made
significant progress on Borborema construction, staying on schedule
and aiming for ramp-up by the end of this quarter.
David Garofalo, Chief Executive
Officer, commented: "We are excited to see significant progress
being made on cornerstone assets within our portfolio and we
anticipate further positive updates throughout the year.
2025 marks a true inflection for Gold
Royalty, as we look forward to the ramp-ups of already cash flowing
assets and continued advancement of development stage projects.
Gold Royalty continues to be well-positioned for significant
revenue growth beyond the current year, including Vares and REN
which are expected to contribute significant revenue in 2027 based
on expected timelines announced by operators, along with multiple
additional potential growth catalysts towards the end of the
decade."
About Gold Royalty Corp.
Gold Royalty Corp. is a gold-focused royalty company offering
creative financing solutions to the metals and mining industry. Its
mission is to invest in high-quality, sustainable, and responsible
mining operations to build a diversified portfolio of precious
metals royalty and streaming interests that generate superior
long-term returns for our shareholders. Gold Royalty's diversified
portfolio currently consists primarily of net smelter return
royalties on gold properties located in the Americas.
Qualified Person
Alastair Still, P.Geo., Director
of Technical Services of the Company, is a "qualified person" as
such term is defined under Canadian National Instrument 43-101 ("NI
43-101") and has reviewed and approved the technical information
disclosed in this news release.
Notice to Investors
For further information regarding the project updates regarding
properties underlying the Company's royalties, stream and other
interests, please refer to the disclosures of the operators
thereof, including the news releases, announcements and other
disclosures of such operators referenced herein. Disclosure
relating to properties in which Gold Royalty holds interests is
based on information publicly disclosed by the owners or operators
of such properties. The Company generally has limited or no access
to the properties underlying its interests and is largely dependent
on the disclosure of the operators of its interests and other
publicly available information. Although the Company does not have
any knowledge that such information may not be accurate, there can
be no assurance that such third-party information is complete or
accurate. In some cases, the Company's royalties and other
interests do not apply to the entirety of the applicable operator's
project areas.
Unless otherwise indicated, the technical and scientific
disclosure contained or referenced in this news release, including
any references to mineral resources or mineral reserves, was
prepared by the project operators in accordance with Canadian
National Instrument 43-101, which differs significantly from the
requirements of the U.S. Securities and Exchange Commission
applicable to domestic issuers. Accordingly, the scientific and
technical information contained or referenced in this news release
may not be comparable to similar information made public by U.S.
companies subject to the reporting and disclosure requirements of
the SEC.
Forward-Looking Statements
Certain of the information contained in this news release
constitutes "forward-looking information" and "forward-looking
statements" within the meaning of applicable Canadian and U.S.
securities laws (collectively, "forward-looking statements") which
involve known and unknown risks, uncertainties and other factors
that may cause the Company's actual results, performance and
achievements to be materially different from the results,
performance or achievements expressed or implied therein. Such
statements can be generally identified by the use of terms such as
"may", "will", "expect", "intend", "believe", "plans", "anticipate"
or similar terms, and include statements relating to the amended
and upsized Facility's expected impact on the Company's business
and prospects, the plans and expectations of the operators of
projects underlying the Company's royalties, the Company's business
plans and expectations regarding its royalty and other interests.
Forward-looking statements are based upon certain assumptions and
other important factors, including assumptions relating to the
timing of any additional advances under the Facility and the
ability of the Company to exercise of the Accordion and assumptions
regarding the continued accuracy of disclosures of the operators of
the projects underlying the Company's interests. Forward-looking
statements are subject to a number of risks, uncertainties and
other factors which may cause the actual results to be materially
different from those expressed or implied by such forward-looking
statements including, among others, risks related to the Company's
ability to satisfy the conditions and covenants necessary to
exercise the Accordion, and other factors set forth in the
Company's Annual Report on Form 20-F for the year ended
December 31, 2023 and its other
publicly filed documents under its profiles at www.sedarplus.ca and
www.sec.gov. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. The Company does not
undertake to update any forward-looking statements, except in
accordance with applicable securities laws.
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SOURCE Gold Royalty Corp.