Gold Royalties Corporation Agrees to Acquire Bermuda Project Royalty
CALGARY, ALBERTA -- (Marketwire) -- 01/30/13 -- Gold Royalties
Corporation (TSX VENTURE:GRO) ("Gold Royalties") is pleased to
announce that it has entered into an agreement to acquire a new
royalty asset in Canada (the "Asset"), represented by a 1.0% net
smelter return royalty interest (the "NSR Royalty") on the Bermuda
Project located near Marathon, Ontario (the "Transaction"). The Asset
will be acquired from Benton Resources Inc. (TSX VENTURE:BEX)("Benton
Resources") for approximately $275,000 of consideration, payable
through the issuance of 352,565 common shares of Gold Royalties (the
"Gold Royalties Shares") at a deemed price of $0.78 per Gold
Royalties Share (the "Share Consideration"). Closing of the
Transaction, which is expected to occur on or before February 28,
2013, is subject to certain conditions, including approval of the TSX
Venture Exchange (the "TSXV").
"We are pleased to gain long-term exposure for our shareholders to
the precious metals potential of the Bermuda Project. Overlying a
large portion of the Coldwell Intrusive Complex, the Bermuda Project
is operated by Stillwater Mining Company and Mitsubishi Corporation.
As with this transaction, we look forward to further portfolio growth
by third-party royalty owners participating in Gold Royalties through
the contribution of beneficial royalty assets," stated Ryan Kalt,
President and Chief Executive Officer of Gold Royalties.
In a sign of confidence in Gold Royalties, Benton Resources has
agreed to a contractual escrow period whereby the Share Consideration
will be subject to escrow with a release one year from the date of
closing of the Transaction.
About the Royalty Interest
The Bermuda Project Royalty
The Bermuda Project is an exploration-stage property comprising
approximately 7,300 hectares located along the eastern and northern
margins of the Coldwell Intrusive Complex near Marathon, Ontario and
adjoins the Marathon and Geordie Lake properties also being advanced
by Stillwater Mining Company and Mitsubishi Corporation. Subject to
the NSR Royalty, Stillwater Mining Company acquired 100% of the
Bermuda Project as announced in December 2010. Mitsubishi Corporation
subsequently acquired a 25% interest in the Bermuda Project from
Stillwater Mining Company as part of a transaction announced in March
The NSR Royalty applies to any ores mined from the Bermuda Property
beyond a production threshold of 2.5 million aggregate ounces of
gold, platinum, and palladium.
Additional information on the Bermuda Project may be found by way of
Stillwater Mining Company's website
(http://www.stillwatermining.com/aboutus/coldwatercomplex.html) and (
About Gold Royalties Corporation
Gold Royalties Corporation is a publicly traded, growth-orientated
royalty business that acquires and holds mining royalty assets for
investment purposes. The company acquires gross sales royalties, net
smelter return royalties and metal stream royalties, with a focus on
gold royalties located in stable jurisdictions. For more information,
please visit www.GoldRoyalties.ca.
Forward Looking Statements
This news release contains certain forward-looking information and
statements within the meaning of applicable securities laws. The use
of any of the words "expect", "anticipate", "continue", "estimate",
"objective", "ongoing", "may", "will", "project", "should",
"believe", "plans", "intends", "confident", "might" and similar
expressions are intended to identify forward-looking information or
statements. In particular, but without limiting the foregoing, this
news release contains forward-looking information and statements
pertaining to expectations, beliefs, plans, goals, objectives,
assumptions, information and statements about possible future events,
conditions, results of operations or performance, including
statements with respect to completion of the Transaction and the
approval of the Transaction by the TSXV. Various assumptions were
used in drawing the conclusions or making the projections contained
in the forward-looking statements throughout this news release.
The forward-looking information and statements included in this news
release are not guarantees of future performance and should not be
unduly relied upon. Forward-looking statements are based on current
expectations, estimates and projections that involve a number of
risks and uncertainties, which could cause actual results to differ
materially from those anticipated and described in the
forward-looking statements. Such information and statements involve
known and unknown risks, uncertainties and other factors that may
cause actual results or events to differ materially from those
anticipated in such forward-looking information or statements.
Gold Royalties cautions that the foregoing list of assumptions, risks
and uncertainties is not exhaustive. The forward-looking information
and statements contained in this news release speak only as of the
date of this news release, and the company assumes no obligation to
publicly update or revise such information or statements to reflect
new events or circumstances, except as may be required pursuant to
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Gold Royalties Corporation
Ryan Kalt, M.B.A., LL.M.
President and Chief Executive Officer
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