#Canada #Vancouver #Gold Royalty #Borborema Project #Aura Minerals

Gold Royalty Expands Its Royalty Portfolio with Borborema Acquisition

Gold Royalty Corp., operating under the ticker symbol GROY on the NYSE American, recently made headlines by announcing its acquisition of a net smelter royalty (NSR) on the Borborema gold mine in Brazil. The deal, valued at $45 million, comprises $30 million in cash and 3,571,429 newly issued shares of Gold Royalty, based on a 20-day volume-weighted average price of $4.20 per share.

Located in the northeastern region of Brazil in Seridó, Rio Grande do Norte, the Borborema Project is operated by Aura Minerals Inc. The acquired royalty stipulates a rate of 1.5% on the first 1.5 million ounces of payable gold production and reduces to 1.0% until a total of 2.0 million ounces is extracted. After this threshold, there are no further royalties.

A Strategic Investment for Growth

The acquisition reflects Gold Royalty's confidence in the Borborema mine's potential and its operators, which has been further affirmed by Aura Minerals' recent performance. Since its start of commercial production in September 2025, the mine has successfully ramped up operations, processing around 4,500 tonnes of ore per day and achieving notable production figures. In the fourth quarter of 2025 alone, Aura announced production of 15,777 gold equivalent ounces, which represents a 54% increase compared to the previous quarter.

The agreement with Dundee Corporation, the seller of the royalty, has been designed not just to procure additional revenue streams but also aligns with Gold Royalty's mission of fostering sustainable and responsible mining practices. David Garofalo, the company's Chairman and CEO, emphasized that this acquisition marks a significant step in strengthening Gold Royalty's portfolio, especially within Brazil—a key area for precious metals mining.

Taurus Mining Royalty Fund's Participation

As part of this strategic investment, Taurus Mining Royalty Fund, L.P. has expressed interest in joining the venture. Under a previously established collaboration agreement, Taurus plans to secure a 50% economic interest in the newly acquired royalty at a price of $22.5 million. This partnership is subject to finalization of necessary agreements and completion of the acquisition conditions.

Gold Royalty's existing interest in the Borborema mine already includes a 2.0% NSR royalty that steps down to 0.5% after 725,000 ounces of payable gold are mined. Additionally, the company maintains rights to a potential further 0.5% NSR contingent upon the repayment of gold-linked loans, with specific buyback clauses in favor of the operator in place.

Confidence in Brazil’s Mining Sector

Garofalo expressed his sentiments regarding the acquisition, stating, "Our acquisition of an additional royalty on the Borborema Project is a testament to our confidence in the continued performance of the operation and the capabilities of the Aura Minerals team." The move is part of a broader strategy to sustainably grow Gold Royalty’s asset base while ensuring robust cash flow through high-quality mining assets.

In the competitive landscape of mining royalties, Gold Royalty's approach underscores the value of long-term relationships and strategic partnerships in enhancing operational capacities and resource availability in the metals and mining sector.

For continued updates and further details about the Borborema Project, insights can be referenced from Aura Minerals’ technical report and additional public disclosures available on regulatory platforms.

About Gold Royalty Corp.

Gold Royalty Corp. is dedicated to investing in precious metals and providing innovative financing solutions within the mining industry. Its diversified portfolio mainly consists of net smelter return royalties, with a strong focus on sustainable and profitable mining operations across the Americas.