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Gold Royalties Discontinues Earn-In Option on Exploration Royalty

Gold Royalties Corporation (GRO.V) has opted to discontinue its participation in the earn-in agreement with 0852959 B.C. Ltd., an arms-length company, relating to the non-core Yellowjacket NSR in British Columbia.

"Given the operator's strategic review announcement, we determined that it was prudent as a royalty company to exercise the risk-reduction measure that we built into the third-party earn-in agreement with nominal impact to Gold Royalties. As a result, we can now benefit from the elimination of liabilities recognized on our balance sheet with respect to this exploration-stage royalty otherwise requiring $600,000 of future cash payments to the third-party vendor," stated Ryan Kalt, President and Chief Executive of Gold Royalties.

Gold Royalties had the ability under the agreement to earn-in on the Yellowjacket Royalty over a seven-year period by making annual payments of $100,000 for a total aggregate purchase price of $700,000. Gold Royalties could terminate the agreement prior to the recurring annual anniversary date. Gold Royalties made a single payment of $100,000 as the January 10, 2012 first installment payment, which it expects to impair in the current quarter.

GRO shares were off three cents at $0.72 on volume of 37,500.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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