GoldMining (TSX: GOLD; US-OTC: GLDLF) has created a wholly owned royalty company - Gold Royalty - with a portfolio of 14 newly created royalties on GoldMining's gold assets in the Americas.
The royalties include 2% net smelter return (NSR) royalties on two gold projects, a 1% NSR on 11 assets and a 0.5% NSR on one project. Eleven of the 14 NSRs are on resource and development-stage projects, with a total exposure to 14.3 million oz. gold-equivalent in the measured and indicated category and 16.6 million oz. gold-equivalent in the inferred classification.
The company has the option to expand its royalty portfolio by buying back existing royalties on up to five of Gold Royalty's 14 interests from third parties.
"Following a decade-long effort since forming the company to assemble an extensive portfolio of gold projects in mining-friendly jurisdictions in North and South America, we believe that the timing is right to create this royalty entity, which imparts an additional and non-dilutive layer of value to existing shareholders," Amir Adnani, the company's chairman, said in a news release. "Over the long-term, we intend to explore potential value-enhancing transactions for Gold Royalty, including a potential spin-off, initial public offering, sale, merger or other transactions that may increase shareholder value."
The royalty portfolio includes a 2% NSR on the Titiribi gold-copper deposit in Colombia, 1% NSRs on the Yellowknife and Whistler deposits in Canada and the U.S., respectively, as well as 1% royalties on four projects in Brazil and one deposit in Peru.
"GoldMining's focus remains on our two-pronged strategy of expanding our property portfolio through accretive transactions of resource-stage gold projects and their advancement towards development," added Garnet Dawson, the company's chief executive officer.
In addition, Gold Royalty will have exposure to any future discoveries on GoldMining's 1,290 sq. km of precious metals-focused holdings in the Americas.
GoldMining holds 14 gold and gold-copper projects in Canada, the U.S., Colombia, Brazil and Peru. The company also has a 75% interest in the Rea Uranium project (25% Orano Canada) in the Western Athabasca Basin in Alberta.
- This article first appeared in the Canadian Mining Journal. The Northern Miner and the Canadian Mining Journal are part of Glacier Resource Innovation Group.