Rottenstone Gold (CSE:SK) has signed a binding agreement to acquire a 0.75% net smelter return royalty over parts of the Great Bear Gold Project in Ontario, Canada.
The all-stock acquisition forms the centrepiece of Rottenstone Gold’s proposed transition from mineral exploration to a mining royalty business.
The Great Bear Royalty covers about 570 hectares of mining leases held by Kinross Gold (TSX:K) and a further 1,241 hectares of mining claims within the area operated by the gold producer.
Rottenstone Gold will issue 18.06 million common shares to the vendor, compared with its existing 29.99 million shares outstanding. The consideration was determined using an independent valuation of the royalty completed in August.
The vendor is a non-arm’s-length party, making the acquisition a related-party transaction. Rottenstone Gold’s independent directors have approved the deal, with interested parties abstaining from the process.
Completion remains subject to Canadian Securities Exchange approval, legal, tax, and regulatory conditions, and endorsement by disinterested shareholders at a special meeting expected during the fourth quarter of 2026.
If completed, the transaction is expected to constitute a fundamental change and result in a change of business for Rottenstone Gold.
The company says it plans to maintain the trading halt on its shares until the acquisition is completed or terminated.
Meanwhile, Rottenstone Gold also intends to adopt the name Silver Royalties, currently used by its wholly owned subsidiary, and seek a new trading symbol when its shares resume trading.
There is no assurance the acquisition will proceed.
Rottenstone Gold is a Canadian exploration company that owns the district-scale Rottenstone Project in Saskatchewan and wholly owns Silver Royalties.
Write to France Pinzon at Mining.com.au
Images: Rottenstone Gold
