Gold Royalty announced it has agreed to acquire an additional net smelter return royalty on the Borborema gold mine and property in northeast Brazil from Dundee Corporation for total consideration of $45 million, made up of $30 million in cash and 3,571,429 newly issued Gold Royalty common shares priced using a 20-day volume-weighted average price of $4.20.
The royalty applies to the Borborema Project, which is operated by Aura Minerals Inc. Under the terms announced, the acquired royalty will pay 1.5% of net smelter returns on the first 1.5 million ounces of payable gold production, stepping down to 1.0% until 2.0 million ounces are produced, after which the royalty will terminate.
Gold Royalty said the transaction remains subject to customary closing conditions and is expected to be completed in January 2026. The company added that Taurus Mining Royalty Fund has notified Gold Royalty it intends to participate in the investment under the parties’ previously announced mutual cooperation agreement.
Taurus said it plans to acquire an economic interest in one-half of the royalty being purchased for $22.5 million in cash, subject to completion of the acquisition, a definitive participation agreement and other customary conditions. If completed, Taurus’ participation would effectively reduce Gold Royalty’s net cash outlay while splitting the economic interest in the newly acquired royalty.
Gold Royalty said the new Borborema royalty would complement its existing royalty position on the mine. The company previously held a 2.0% NSR that steps down to 0.5% after 725,000 ounces of payable gold are produced, and that existing royalty is also subject to an operator buyback after the earlier of 2.25 million ounces of payable gold production or the year 2050. Gold Royalty also holds an option to receive an additional 0.5% NSR upon repayment of its gold-linked loan, subject to similar buyback rights.
The Borborema Project is located in the Seridó region of Rio Grande do Norte State in northeast Brazil. Aura previously reported that the mine reached commercial production effective Sept. 22, 2025, with operations running at 80% of design capacity and processing 4,500 tonnes per day. Aura also reported that total production for the mine in the fourth quarter of 2025 was 15,777 gold equivalent ounces, up 54% from the prior quarter.
Gold Royalty said disclosure related to the Borborema mine was derived from Aura’s public filings and a technical report summary, and noted it has limited access to the property and has not independently verified third-party information. The company also said Alastair Still, its director of technical services, reviewed and approved the technical information as a qualified person under Canadian NI 43-101.
KEY QUOTES:
“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. We are pleased to increase our interest in this high-quality asset and to further strengthen our ties to Brazil, an important global mining jurisdiction. We continue to look for opportunities to expand our asset portfolio and to deploy capital, using a prudent and disciplined approach and prioritizing near-term cash flow from high quality assets.”
“This agreement with Dundee is another example of how our team’s deep connectivity into the metals and mining sector can facilitate our growth even in a competitive royalty landscape through bilaterial, relationship-based transactions.”
David Garofalo, Chairman and Chief Executive Officer, Gold Royalty
