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Fort Capital Partners Advises the Special Committee of Great Bear Royalties on Sale to Royal Gold

Transaction Details

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Great Bear Royalties Corp. (“Great Bear Royalties”) (TSXV: GBRR) announced that it has entered into a definitive arrangement agreement to be acquired by a wholly-owned subsidiary of Royal Gold, Inc. (“Royal Gold”).

Under the arrangement agreement, Royal Gold has agreed to acquire all of the issued and outstanding common shares of Great Bear Royalties for cash consideration of $6.65 per share, implying a total equity value of approximately $200 million. The consideration implies a premium of 51% and 43% to the closing price and the 20-day VWAP, respectively, of Great Bear Royalties’ shares.

Great Bear Royalties was formed in 2020 to hold a 2% Net Smelter Returns royalty on the Great Bear Project, which is currently owned by Kinross Gold as a result of its takeover of Great Bear Resources for $1.8 billion in February 2022.

The Great Bear Project is located 25 km from Red Lake, Ontario, and is an emerging world-class gold project with potential for significant resource growth and long-life production.

Fort Capital Partners acted as financial advisor to the Special Committee and provided a fairness opinion with respect to the Transaction. Cormark Securities Inc. and GenCap Mining Advisory Ltd. are acting as co-advisors to Great Bear Royalties, and Blake, Cassels & Graydon LLP is acting as Great Bear Royalties’ legal counsel.