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GROY -8.84% BLK -2.66%

Gold Royalty Corp is doing a deal with BlackRock for an existing royalty. But, why?

What’s happening:

  • Gold Royalty Corp (NYSE: GROY) has entered into a new deal to acquire the existing royalty on the Pedra Branca mine from BlackRock for $70M USD

By the numbers:‍

  • The Pedra Branca mine generated $7.9M USD of royalty income over the last 12 months for BlackRock
  • The existing royalty being purchased by Gold Royalty Corp includes a 25% net smelter return on royalty on gold and a 2% royalty on copper production

Why it matters:‍

  • The Pedra Branca mine is located in one of the most historic mining regions in Brazil and is operated by precious metals and commodities conglomerate BHP Group (NYSE: BHP)

Going deeper:‍

  • Gold Royalty Corp is raising $70M USD in a new equity financing round to fund the purchase of the existing royalty on the Pedra Branca mine