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Gold Royalty Secures $70 M Bought-Deal Financing to Accelerate Mokoto Gold Exploration

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  Published in Business and Finance on Monday, December 8th 2025 at 8:08 GMT by Toronto Star

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Gold Royalty Secures $70 Million Bought‑Deal Financing to Accelerate Exploration Pipeline

Gold Royalty Ltd., the junior gold exploration company listed on the TSX Venture Exchange under the symbol GR (ticker: GR), announced today that it has successfully closed a US$70 million bought‑deal financing. The transaction, executed through a private placement of shares and accompanying warrants, was fully subscribed by a group of institutional investors before the placement price was announced. This “bought‑deal” structure provides Gold Royalty with immediate, unencumbered capital, giving the company a significant liquidity boost that will be directed toward accelerating its flagship Mokoto Gold Project in Ghana and expanding its broader exploration agenda.

What a Bought‑Deal Financing Means

Unlike traditional public offerings, a bought‑deal financing is negotiated and agreed upon privately, with the offering fully subscribed by investors ahead of the pricing announcement. Because the company has already secured all the capital it seeks, the transaction closes more quickly and with greater certainty. For Gold Royalty, the $70 million will be available to the company in full on the closing date, allowing it to move forward without delay on its planned drilling programs, environmental studies, and infrastructure needs.

The terms of the placement are as follows:

Gold Royalty’s Chief Executive Officer, John Doe, commented: “The immediate injection of capital through this bought‑deal gives us the runway we need to close the current drilling window at Mokoto, confirm resource estimates, and move toward a feasibility study. It also signals to the market that we are committed to unlocking value for shareholders, while keeping our balance sheet strong.”

Mokoto Gold Project: The Cornerstone of the Expansion

Gold Royalty’s most advanced asset remains the Mokoto Gold Project in the Upper West Region of Ghana. The project sits on a 2,400‑hectare lease that the company acquired in 2020, and it has been the focus of intensive exploration since then. Recent drill results have confirmed a high‑grade gold‑rich zone of 5 g/t gold, as well as a broader mid‑tier resource of 3.5 g/t gold with a copper equivalent of 1.5 %. These figures, disclosed in a 2023 update, put the Mokoto deposit on track to qualify for a pre‑feasibility study by the end of 2024.

The $70 million will be earmarked for:

1. Exploration Drilling – Completing a targeted drill program that will test the vertical extent of the high‑grade zone and refine the geostatistical model of the deposit.
2. Geophysical Work – Deploying advanced 3‑D seismic surveys to delineate subsurface mineralization.
3. Infrastructure – Upgrading access roads and securing water supply for the planned open‑pit operation.
4. Working Capital – Covering payroll, equipment rentals, and administrative costs for the next 18 months.

The company expects the drilling program to produce a Pre‑Feasibility Study (PFS) by Q4 2024, which will underpin a subsequent Feasibility Study (FS) slated for 2025. A positive outcome could open the door for a joint‑venture partnership or a strategic sale of a stake in the Mokoto project to a larger mining operator.

Broadening the Exploration Horizon

While Mokoto remains the company’s flagship project, Gold Royalty is actively pursuing exploration opportunities in Zambia and Uganda. In Zambia, the company holds a 3,000‑hectare lease around the Ndola region, where preliminary geophysical surveys suggest the presence of a potential gold‑copper‑platinum‑group‑elements (PGE) system. In Uganda, Gold Royalty is evaluating a 1,500‑hectare parcel near the Kigezi highlands, leveraging recent satellite imagery to identify gold‑bearing veins.

The injection of capital from the bought‑deal will also allow Gold Royalty to increase its acreage footprint by acquiring additional leases, thereby improving the diversification of its project portfolio and mitigating project‑specific risks.

Market Reaction and Investor Outlook

Following the announcement, Gold Royalty’s shares saw a 4.8 % uptick in after‑hours trading on the TSX Venture Exchange, reflecting investor confidence in the company’s cash‑positive outlook. Analysts have noted that the company’s current cash reserve of $12 million, combined with the new $70 million injection, positions Gold Royalty well to fund a full year of exploration without needing further external financing.

Investor Maria López, partner at López Capital Management, remarked: “Gold Royalty’s use‑of‑proceeds strategy is laser‑focused on a single, high‑grade deposit. When you see a company like this commit that kind of capital to a proven resource, it signals strong management discipline and a clear path to value creation.”

Looking Ahead

Gold Royalty’s next milestones will include:

• Completion of the drilling program at Mokoto by the end of Q2 2024.
• Publication of the Pre‑Feasibility Study in Q4 2024.
• Decision on a joint‑venture structure or a strategic asset sale in early 2025.
• Expansion of the exploration pipeline in Zambia and Uganda, contingent on funding and project viability.

The company will continue to keep shareholders updated via quarterly reports and investor briefings. A link to the full press release and the accompanying financial statements is available on Gold Royalty’s website under the “Investor Relations” section, providing additional detail on the terms of the financing and the company’s financial position.

In summary, the US$70 million bought‑deal financing marks a significant step forward for Gold Royalty, enabling the company to accelerate its exploration agenda, strengthen its balance sheet, and position itself for a potential high‑profile transaction in the gold sector.