Great Bear’s main asset is a 2% net smelter return royalty that covers the entirety of the Great Bear project in the Red Lake district of Ontario indirectly owned and operated by Kinross Gold. As part of the due diligence process, Royal Gold has entered into a co-operation agreement with Kinross that provided it access to Kinross personnel and certain non-public information pertaining to the Great Bear project.
In exchange, Royal Gold will amend certain terms of the royalty agreement upon closing of the acquisition, including providing an option to Kinross to purchase a 25% interest in the royalty for an amount equal to 25% of the purchase price of GBR, adjusted for inflation, at any time from the transaction closing date until the earlier of: a construction decision for the project, or 10 years after the transaction closing date.
“The royalty represents one of the few royalty interests that meets all the characteristics we…
