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Gold Royalty Acquires Brazilian Gold Royalty for $75M

  //business-finance.news-articles.net/content/202 .. lty-acquires-brazilian-gold-royalty-for-75m.html
  Published in Business and Finance on Sunday, March 22nd 2026 at 17:00 GMT by Seeking Alpha
      Locales: BRAZIL, CANADA

Toronto, Ontario - March 22, 2026 - Gold Royalty Corp. (GOR.TO) (GLDXF) today announced a strategic acquisition poised to bolster its revenue stream and solidify its position in the precious metals royalty space. The company has entered into a definitive agreement to purchase a 2% Net Smelter Royalty (NSR) on SSR Mining Inc.'s (SSRM) prolific Pedra Branca mine in Brazil for $75 million in cash. Simultaneously, Gold Royalty launched a robust bought-deal financing, aiming to raise approximately $62.6 million to fund the acquisition and support general corporate growth.

The Pedra Branca mine, a significant heap-leach gold operation, has consistently delivered strong production numbers, making the 2% NSR royalty a highly attractive asset. This addition aligns perfectly with Gold Royalty's strategy of acquiring diversified, high-quality royalties on established, producing mines. NSR royalties provide a low-cost revenue model, allowing Gold Royalty to benefit from gold production without the operational complexities and capital expenditures associated with direct mine ownership. The consistent cash flow generated by royalties offers predictable and scalable returns for investors.

A Deeper Look at the Pedra Branca Mine

Located in the Caldas Novas district of Goias state, Brazil, the Pedra Branca mine has a proven track record of gold production. SSR Mining has successfully expanded the mine's resource base and operational efficiency in recent years. The mine benefits from favorable geology, relatively low operating costs, and robust infrastructure. SSR Mining's commitment to responsible mining practices and community engagement further enhances the long-term viability of the asset. According to recent reports, the mine produced approximately 120,000 ounces of gold in 2025, with guidance for similar levels in the coming years. A 2% NSR on this production is projected to contribute significantly to Gold Royalty's annual revenue.

Financing the Growth: The Bought-Deal Offering

To fund the $75 million Pedra Branca acquisition and provide additional working capital, Gold Royalty has launched a bought-deal financing. The offering consists of approximately 8.64 million common shares priced at $7.25 per share, totaling approximately $62.6 million in gross proceeds. A standard over-allotment option of 15% allows underwriters to purchase an additional 1.296 million shares, potentially increasing the total proceeds to around $72 million. This over-allotment is a common feature in bought-deal financings and provides the underwriters with the flexibility to meet strong investor demand.

Bought-deal financings are a popular method for companies to quickly raise capital. In this arrangement, underwriters agree to purchase a specific number of shares at a set price, guaranteeing the company receives the funding it needs. The shares are then resold to the public, often at a slight premium. The speed and certainty of this financing method make it particularly appealing for time-sensitive acquisitions like the Pedra Branca royalty.

Strategic Implications for Gold Royalty

This acquisition represents a significant step forward for Gold Royalty. By adding the Pedra Branca royalty to its portfolio, the company increases its exposure to a proven, producing asset in a stable mining jurisdiction. The deal is expected to be immediately accretive to Gold Royalty's revenue and cash flow. Furthermore, the diversified nature of the company's royalty portfolio reduces its overall risk profile. Gold Royalty now holds royalties on a range of projects across multiple geographies, including North America, South America and Australia.

Analysts have largely reacted positively to the news, citing the strategic fit of the acquisition and the sound financing structure. "This is a classic Gold Royalty move - acquiring a high-quality royalty on a producing mine with a clear pathway to increased revenue," said one mining analyst. "The bought-deal financing is well-structured and allows the company to execute its growth strategy without diluting existing shareholders excessively."

Looking ahead, Gold Royalty continues to actively pursue additional royalty acquisitions. The company's experienced management team is focused on identifying undervalued assets with strong growth potential. With a robust balance sheet and a proven track record of successful acquisitions, Gold Royalty is well-positioned to capitalize on the growing demand for precious metals royalties.