CountOfMeltedCrisco
1 month ago
This was a masterstroke, picking up this copper royalty.
And notice that the Bought Deal was fully subscribed, and
quickly, including the entire over-allotment. Now, let me tell
you something about 'H.C. Wainwright', one of the book-runners
in the Syndicate. They're this little NYC boutique brokerage
who cater to the ultra-ultra-ultra-wealthy, the sort of folks who
have a $20 million yacht as a dinghy for their $200 million
yacht. Yes, that crowd. Wainwright doesn't put their Clients
in dead-money deals. And Adriatic is in a very mining-friendly
jurisdiction. Bosnia and Herzegovina know from whence their
largesse cometh.
GROY is going to be Wheaton-on-Steroids.
BestFishes
11 months ago
Gold Royalty Announces Acquisition of Royalty Over Capstone’s Producing Copper-Silver Cozamin Mine
Vancouver, British Columbia – July 31, 2023 – Gold Royalty Corp. (NYSE American: GROY) ("Gold Royalty" or the "Company") is pleased to announce that it has entered into an agreement (the "Agreement") to acquire an existing 1.0% net smelter return (“NSR”) royalty (the “Royalty”) from Endeavour Silver Corp. (“Endeavour”) on portions of the Cozamin Copper-Silver Mine, located in Zacatecas, Mexico, (“Cozamin”) for total cash consideration of US$7.5 million. Cozamin is owned and operated by Capstone Copper Corp. ("Capstone").
The Company also announces that it expects that, with the completion of the proposed acquisition, its board of directors will suspend dividends under its previously announced dividend program to focus capital on executing its strategic priority of growing cash flow and net asset value per share through accretive acquisitions.
David Garofalo, Chairman and CEO of Gold Royalty commented, “The acquisition of the Cozamin royalty brings immediate cash flow, complementing our peer-leading revenue growth rate from our portfolio of high-quality, long-life North American assets. Capstone is an experienced and proven operator and we are excited to see them continue to deliver strong operating and exploration results at Cozamin for years to come. We currently expect to be generating positive free cash flow in 2024 with, among other things, the addition of Cozamin, the Côté Gold Project on track to enter production early next year, and corporate overhead costs continuing to decrease.”
Acquisition Highlights:
Cozamin is an established, low-cost operating copper-silver mine which has been in production since 2006 and has a history of exploration success and mine life extensions;
The Royalty generated revenue of over US$1.0 million over the last year and is expected to add meaningful cash flow to Gold Royalty going forward, along with leverage to increasing copper and silver prices during the life of mine;
Capstone published an updated National Instrument I 43-101 ("NI 43-101") technical report for Cozamin in May 2023 which outlined a life of mine plan extending to 2030 based only on mineral reserves1;
The Royalty covers two concessions over the Calicanto vein at Cozamin. As part of the transaction, Gold Royalty has been granted the option to acquire additional royalties on five contiguous concessions to the south of the Royalty for consideration of up to US$500,000.
The Company intends to fund the transaction through its existing cash and cash equivalents.
1 Based on the NI 43-101 Technical Report titled “NI 43-101 Technical Report on the Cozamin Mine, Zacatecas, Mexico” prepared for Capstone Copper Corp. with an effective date of January 1, 2023, a copy of which is available under Capstone’s profile at www.sedar.com (the "Cozamin Report") . C1 cash costs per payable pound of copper produced is a measure reflective of operating costs per unit. Capstone calculates C1 cash costs as cash production costs of metal produced net of by-product credits.
The Cozamin Royalty
Cozamin is a copper-silver underground mine with a surface milling facility, located 3.6 km north-northwest of Zacatecas City in the mineral-rich state of Zacatecas, Mexico. Since the first full year of operation, Cozamin has generated free cash flow at all points of the copper price cycle.
Cozamin has been continuously operated by Capstone since late 2006, when it commenced commercial production at a rate of 1,000 tonnes per day. At the time, it had a three-year mine life based upon then existing mineral reserves. Since then, successful exploration has extended the expected life of the mine to 2030 based on existing mineral reserves1.
From 2023 to 2030, average annual production is currently forecasted by Capstone at 20,000 tonnes of copper and 1.3 million ounces of silver at average C1 costs of US$1.51 per payable pound of copper. Between 2023 to 2027, average projected annual production is expected by Capstone to be higher at 24,000 tonnes of copper and 1.7 million ounces of silver, at lower average projected C1 costs of US$1.46 per payable pound of copper1.
Capstone announced on February 1, 2023 that it plans to update its mine plan in 2024 to introduce cut-and-fill mining, which it expects will allow it to convert additional resources to reserves and provide a pathway to increase production at the mine to better utilize the installed mill capacity of 4,400 tonnes per day.
The Royalty was created under a 2017 concession division agreement between Endeavour and Capstone, under which, among other things, if Capstone outlined a primarily base metals mineral resource estimate (defined as >60% of NSR value) on certain concessions owned by Endeavour, it would grant Endeavour a 1% NSR royalty on such concessions. The Royalty applies to two concessions (Calicanto and Vicochea) where the base metals threshold was met. Gold Royalty has also been granted an option by Endeavour to acquire a 1% NSR royalty on five additional concessions if such royalties are granted in the future. Pursuant to the option, Gold Royalty would acquire such royalties, subject to existing rights of first refusal held by Capstone, in exchange for US$300,000, in the case of the Mise concession and US$50,000 in the case of each other concession, which amount may, at the option of Gold Royalty, be satisfied by issuing Gold Royalty common shares.
The acquisition of the Royalty is subject to customary conditions and is currently expected to be completed in August 2023.
Figure 1: Plan view map superimposing the Endeavour concessions and an aerial photograph of the existing mine workings (Reference: Capstone Endeavour Division Agreement)
fink
1 year ago
I’m not a big fan of copper. There is money in that, but there is so much around us at any given time.
My metal is more for insurance against my long term debt. I did good with wrapping up all my debt below 3% for the next 30 years. I missed out in the kids college debt. A senior and freshman. So long as inflation stays around 10% over the next 10+ years, I’m good.
However, if things go nutz and we see resl inflation going over 30-60% per year, everyone’s fix rate mortgages have a clause where the bank can call the entire loan ASAP. That’s where the dollar will be worthless snd gold/silver will explode. I want enough to pay off my mortgage with metal.
Other than that, gold/silver is a crap investment. I look at it as insurance.
I’ve hoarded a lot of silver. It’s heavy as hell. If the gold-silver ration ever gets below 65, I’m rolling 3/4 of my silver into gold. But damn! The ratio keeps going up. You must buy silver this high.
As gold hits new highs in the short term, next 10 years, GROY will do awesome. It’s like a gold index fund. They have a broad net of miners doing the work and taking the risk and expense. Just picking a single miner is like throwing darts. I’d rather buy physical than doing that.
jsc52033
1 year ago
yes things are changing fast. WIll be lucky is Russia and China don't unite against USA and Nato. WW3 is so very close to starting. Binden's speach in Kyiv was stupid and antagonizing.
Iran is close to a nuke bomb and N Korea building better delivery systems.
Your dad getting paid in procuce in the 60's wow. Our town in 1940-50's had 1400 people. 2 harware stores which ment 2 fundeal homes. 2 MD's and 1 Chiropractor (my dad) a harness shop. 5 grocery stores a John Deer dealer and a IH dealer. 1 ford, 1 Chevy and 1 Plymout dealer, a mens clothing store, a 5 and dime 1 drug store a varriety store a movie teather 5 gas stations, 2 feed stores 1 blacksmith shop, 1 cop, 2 resturants 1 dance hall (it was the American Legion hall) 3 schools 2 were religious, 1 stock yard, 1 moon shiner. The farmers would come into town with horses and tie up in the alleys and hit the taverns while the wives shopped.
BestFishes
1 year ago
Gold Royalty Declares First Quarter 2023 Dividend And Introduces A Dividend Reinvestment Plan
Vancouver, British Columbia – February 16, 2023 – Gold Royalty Corp. (NYSE American: GROY) ("Gold Royalty" or the "Company") is pleased to announce that its board of directors has declared the Company’s first quarter 2023 cash dividend of US$0.01 per common share and adopted a dividend reinvestment plan (the "DRIP").
First Quarter 2023 Dividend
The dividend will be paid on April 13, 2023 to shareholders of record as of the close of business on March 31, 2023.
The dividend qualifies as an "eligible" dividend as defined in the Income Tax Act (Canada). The dividend is subject to customary Canadian withholding tax for shareholders that are not resident in Canada. The Company's dividend program contemplates quarterly dividends, the declaration, timing, amount and payment of which will be subject to the discretion and approval of the board of directors of the Company based on relevant factors, including, among others, the Company’s financial condition and capital allocation plans.
Dividend Reinvestment Plan
The Company has adopted the DRIP commencing with its upcoming first quarter 2023 dividend. In order to be eligible to participate in first quarter 2023 dividend, enrollment must be completed by registered shareholders by 5:00 pm (Toronto time) on March 24, 2023. Beneficial shareholders will need to make arrangements through their brokers and/or nominees sufficiently in advance of such time.
The DRIP provides eligible shareholders of Gold Royalty with the opportunity to have all or a portion of the cash dividends declared on their common shares by the Company automatically reinvested into additional common shares, without paying brokerage commissions.
Participation in the DRIP is optional and will not affect shareholders' cash dividends unless they elect to participate in the DRIP.
The DRIP allows participating shareholders to reinvest some or all of their cash dividends into additional common shares. At the current time, the common shares will be issued under the DRIP at a 3% discount to the Average Market Price, as defined in the DRIP, without paying brokerage commissions.
The Company has the discretion to cause share issuances under the DRIP to be satisfied by issuing common shares from treasury or through purchases of common shares on the open market including the facilities of the NYSE American and will advise as such with each dividend declaration.
Participation in the DRIP
Participation in the DRIP is expected to be available to registered shareholders residing in (i) Canada;(ii) the United States, subject to the Company filing and the SEC declaring effective a registration statement in the United States; and (iii) all other jurisdictions where such participation is not prohibited under applicable law.
Registered Shareholders
Registered Shareholders may enroll in the DRIP by completing an enrollment form, which is available on the Company's website at http://www.goldroyalty.com/investors/dividends/ and following the instructions therein.
Beneficial Shareholders
Beneficial shareholders should contact their financial intermediary to seek enrollment. In order to participate in the DRIP, a beneficial shareholder must either:
arrange for their broker or other nominee to enroll in the DRIP on their behalf; or
transfer their common shares into their own name and enroll directly in the DRIP as a registered shareholder.
Due to administrative policies of The Depository Trust Company ("DTC"), in order to make an election under the DRIP, beneficial shareholders that hold their common shares through a DTC participant broker, will need to either cause their broker to withdraw their shares from DTC and deposit them with the Clearing and Depository Services, Inc.; or (ii) cause their broker to register such shares directly in the name of such beneficial shareholder. Such actions would need to be completed with sufficient time to deliver elections prior to applicable deadlines as set forth in the DRIP.
All shareholders considering enrollment in the DRIP should carefully review the terms of the DRIP, a copy of which is available at http://www.goldroyalty.com/investors/dividends/, and consult with their advisors as to the implications of enrollment in the DRIP.
This press release is not an offer to sell or a solicitation of an offer of securities. The Company intends to file a registration statement relating to the DRIP with the U.S. Securities and Exchange Commission, and, when filed, electronic copies may be obtained under the Company's profile on the U.S. Securities and Exchange Commission's website at http://www.sec.gov or by contacting the Company using the contact information below.
Shareholders with any questions regarding the DRIP and the enrollment process may contact: info@goldroyalty.com.
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.
Gold Royalty Corp.
Peter Behncke
Manager, Corporate Development & Investor Relations
Telephone: (833) 396-3066
Email: info@goldroyalty.com
Cautionary Statement on Forward-Looking Information:
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 ("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. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements respecting future dividends and implementation of the DRIP. Forward-looking statements are based upon certain assumptions and other important factors, including assumptions relating to commodities prices, the projects underlying the Company's royalty interests and the business of the Company. 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 September 30, 2022 and its other publicly filed documents under its profiles at www.sedar.com 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.
Gold Royalty Corp.
+1 (833) 396-3066 | | info@goldroyalty.com | www.goldroyalty.com
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