Gold Royalty Signs Deal to Acquire Vares Copper Stream

VANCOUVER, British Columbia, May 28, 2024 (GLOBE NEWSWIRE) — Gold Royalty Corp. (“Gold Royalty” or the “Company”) (NYSE American: GROY) has finalized a deal with OMF Fund III (Cr) Ltd., managed by Orion Mine Finance Management LP (“Orion”), to obtain a copper stream on the Vares Silver Project operated by a subsidiary of Adriatic Metals plc (“Adriatic“) in Bosnia and Herzegovina.

Transaction Details:

Gold Royalty will acquire the Stream by paying US$50 million to Orion at the closing of the deal. This includes US$45 million in cash and US$5 million through the issuance of 2,906,977 Gold Royalty shares.

Enhancing Cash Flow and Exploration Opportunities

The Vares Stream is expected to significantly increase Gold Royalty’s cash flow as it covers 100% of copper production and offers ongoing payments based on the LME spot copper price. The Stream is projected to provide substantial cash flow with the first concentrate production in February 2024 and commercial production anticipated by the fourth quarter of 2024. Additionally, Adriatic’s production guidance suggests consistent growth in copper grades and ore mined over the next few years, presenting a promising opportunity for Gold Royalty to benefit from soaring copper prices.

Potential for Expansion and Exploration

The Vares Project is a high-quality asset with exploration and expansion potential. Adriatic plans to extend the mine life to 18 years with a focus on the high-grade polymetallic Rupice deposit. Studies are underway to increase annual production rates, showcasing the project’s growth potential and prospects for further exploration within the existing Vares concessions.

Building Relationships with Industry Experts

Aligning with Adriatic’s experienced operating team positions Gold Royalty to leverage the expertise and operational proficiency of a seasoned industry player. Recent initiatives aimed at enhancing productivity and development indicate a strong operational foundation, supporting Adriatic’s timeline for commercial production by late 2024.

The acquisition of the Vares Stream demonstrates Gold Royalty’s commitment to diversifying its portfolio with a long-term asset that not only contributes to immediate cash flow but also offers substantial growth potential through exploration and expansion opportunities. The strategic partnership with Orion further solidifies Gold Royalty’s standing in the mining sector, promising future benefits from record-high copper prices.

Insight Into the Vares Silver Project

The Vares Silver Project encompasses 41 km² of concession area, primarily located around the town of Vares in Bosnia and Herzegovina. The project focuses on polymetallic production, including silver, zinc, lead, gold, copper, and antimony, with initial development centered on the Rupice underground mine. The project’s high-tech processing plant is designed to produce silver-lead and zinc concentrates for shipment to smelters, highlighting a commitment to modern, efficient, and safe operations.

Adriatic’s production guidance indicates steady growth in various metal grades over the coming years, showcasing the project’s robust mineral resources and operational potential. The Vares Project’s strategic location and economic benefits further underscore its significance as a key investment in the region.

It’s important to note that the current estimates and guidance for the Vares Project are based on industry standards and regulations to ensure accurate reporting of mineral resources and production projections.

Moving Forward With the Transaction

Gold Royalty plans to fund the acquisition through its equity offering and an expanded revolving credit facility. The amendment to the credit agreement with the Bank of Montreal and the National Bank of Canada reflects Gold Royalty’s commitment to securing the necessary financing for the Transaction, underscoring its financial prudence and strategic approach to deal-making.

About Gold Royalty Corp.

Gold Royalty Corp. is dedicated to providing innovative financing solutions for the mining industry, with a focus on gold projects in the Americas. By investing in sustainable and responsible mining operations, the Company aims to build a diverse portfolio of precious metals assets that deliver superior long-term returns for shareholders.

Gold Royalty Corp. Contact

Peter Behncke
Director, Corporate Development & Investor Relations
Telephone: (833) 396-3066
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Qualified Person

Alastair Still, P.Geo., Director of Technical Services of the Company, has reviewed and approved the technical information in this news release as a qualified person under Canadian National Instrument 43-101 (“NI 43-101“).

Notice to Investors

While the information in this press release is derived from Adriatic’s disclosures and publicly available data, Gold Royalty has not independently verified this information. This approach ensures transparency and regulatory compliance, providing investors with accurate and reliable information on the Vares Project and the Transaction.

Forward-Looking Statements

The forward-looking statements in this news release reflect Gold Royalty’s strategic direction, commitment to growth through acquisitions, and anticipation of favorable market conditions. By leveraging industry partnerships, expanding financial capabilities, and adhering to rigorous reporting standards, Gold Royalty aims to create long-term value for shareholders while contributing to sustainable mining practices.