Gold Royalty Acquires a Royalty on the Copper-Gold Project Pedra Branca in Brazil

Key Concepts

• Net Smelter Return (NSR): A percentage of the revenue received from the sale of metals produced from a mine, paid to the royalty holder.
• Royalty: A right to receive a percentage of revenue generated from a mining property.
• Share Placement: The issuance of new shares by a company to investors, typically to raise capital.
• Point and Figure Chart: A technical analysis charting method used to identify potential buy and sell signals.
• Gross Proceeds/Net Proceeds: Total funds raised before/after expenses from a financial transaction (like a share placement).

Gold Royalty Company Update – Petra Prana Mine Acquisition & Share Placement

This update details Gold Royalty’s recent acquisition of a royalty license for the Petra Prana mine in Brazil and a concurrent share placement to finance the acquisition. The program highlights the strategic importance of this acquisition for Gold Royalty’s future cash flow and asset portfolio.

Petra Prana Mine Royalty Acquisition

Gold Royalty has acquired the existing license for the Petra Prana mine from Black Rock Mining Trust for a cash payment of $7 million US. The Petra Prana mine is currently an operating copper and gold mine owned and operated by a subsidiary of BHP Group. A key factor influencing this acquisition is BHP’s announced sale of the Pilra Pranka mine and other assets in the Karajas region to Core X Holding BV in August 2025. This sale is expected to positively impact Gold Royalty’s cash flow up to June 30th, 2025.

Specifically, royalties generated from the license amounted to approximately $7.9 million US. This figure is based on an average gold price of $2,811 per ounce, translating to roughly 2,800 gold equivalent ounces. The company anticipates significant cash flow generation upon completion of the acquisition, driven by prevailing gold price trends.

The royalty agreement stipulates a Net Smelter Return (NSR) of 25% on gold and 2% on copper produced at Petra Brana. This structure provides Gold Royalty with substantial exposure to both gold and copper revenues. The royalty covers the entire Praa East and Petra Brana West deposits, with no step-down options, ensuring full exposure to the asset’s long-term potential.

The Petra Brana East underground copper and gold mine began production in 2020, initially operating at a rate of approximately 800,000 tons per annum under Oz Minerals. BHP acquired Petra Brana as part of its acquisition of Oz Minerals in 2023 and has since extended the mine’s lifespan, reporting increased mineral resources and ore reserves in its 2025 annual report (ended June).

Share Placement Details

To finance the Petra Prana acquisition and for general corporate purposes, Gold Royalty completed a share placement. The company issued 25.875 million common shares on a “bought deal” basis, including 3.375 million shares resulting from the full exercise of an over-allotment option. The shares were priced at $4.00 each, generating total gross proceeds of $103.5 million US. The net proceeds from this offering will be allocated towards funding the Petra Prana royalty acquisition and supporting general corporate activities.

Technical Analysis & Additional Information

The program presenter noted that the point and figure chart is currently indicating a buy signal for Gold Royalty, with a price target of $6.00 to $6.50 US. Information regarding the company and commodities is available on the Commodity TV website in both German and English.

Disclaimer & Potential Conflicts of Interest

A disclaimer was provided stating that the stock discussed is part of the SRC mining special situation certificate. SRC, its employees, and/or the presenter may currently be or become shareholders of the company.

Conclusion

Gold Royalty’s acquisition of the Petra Prana mine royalty and the successful completion of the share placement represent a strategic move to enhance the company’s cash flow, strengthen its gold and copper exposure, and capitalize on favorable commodity price trends. The NSR structure and full deposit coverage of the royalty agreement position Gold Royalty for long-term growth and value creation.