Royal Gold to buy Great Bear Royalties in C$200M deal (NASDAQ:RGLD)

Royal Gold to buy Great Bear Royalties in C$200M deal (NASDAQ:RGLD)

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Royal Gold (NASDAQ:RGLD) said on Monday it agreed to acquire Great Bear Royalties (OTCPK:GBRBF) for C$6.65/share, or C$199.5M in cash.

Great Bear’s (OTCPK:GBRBF) only material asset is a 2% net smelter return royalty that covers all of the Great Bear Project in Ontario, indirectly owned and operated by Kinross Gold (KGC).

Great Bear said it entered into a co-operation agreement with Kinross (KGC) that provided access to Kinross personnel and certain non-public information pertaining to the project; in exchange, Great Bear amended certain terms of the royalty agreement upon closing of the acquisition, including providing an option to Kinross to purchase a 25% interest in the royalty for an amount equal to 25% of purchase price of Great Bear, adjusted for inflation.

The Great Bear Project, Canada’s newest major gold discovery, is considered an “emerging world class gold project with long-term growth potential.”

Royal Gold’s (RGLD) organic growth pipeline allows it to grow earnings even with flat metal prices, Taylor Dart writes in an analysis posted on Seeking Alpha.

Originally Posted on: https://seekingalpha.com/news/3855607-royal-gold-to-buy-great-bear-royalties-in-c200m-deal?source=feed_tag_commodities
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