EDR:CC - Gold Royalty to suspend dividends to focus capital on acquisitions

2023-07-31 07:47:42 ET

Gold Royalty ( NYSE: GROY ) said Monday it agreed to acquire an existing 1% net smelter return royalty from Endeavour Silver ( EXK ) on portions of the Cozamin copper-silver mine in Mexico for $7.5M in cash.

Upon completion of the Cozamin deal, Gold Royalty ( GROY ) said it will suspend dividends "to focus capital on executing its strategic priority of growing cash flow and net asset value per share through accretive acquisitions."

The Cozamin royalty generated more than $1M in revenue during the past year and is expected to add meaningful cash flow going forward, along with leverage to increasing copper and silver prices during the life of mine, the company said.

Cozamin is owned and operated by Capstone Copper ( OTCPK:CSCCF ), which forecasts average annual production of 20K metric tons and 1.3M oz of silver during 2023-30.

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