Dundee to sell Borborema NSR royalty to Gold Royalty

Executive Summary

• Dundee Corp. has entered into a royalty purchase agreement with Gold Royalty Corp. to sell its net smelter return (NSR) royalty on the Borborema gold project.
• The transaction is valued at an aggregate purchase price of $45-million (U.S.), structured as a mix of cash and equity.
• The deal is expected to close in January 2026 and is described by management as a materially NAV-accretive move to fund operating initiatives and strategic partnerships.

Key Details

• Transaction Structure: Sale of net smelter return royalty on the Borborema gold project.
• Counterparty: Gold Royalty Corp.
• Aggregate Purchase Price: $45-million (U.S.).
• Cash Component: $30-million (U.S.).
• Equity Component: $15-million (U.S.) in common shares of Gold Royalty Corp.
• Share Price Basis: Common shares issued at $4.20 (U.S.) per share, representing the 20-day volume-weighted average price (VWAP) of Gold Royalty common shares on the day prior to signing.
• Expected Completion: January 2026.
• Strategic Rationale: Management cites disciplined capital allocation, sustainable cash flow generation, and funding for the recently announced joint venture partnership with Westhaven.

Notable Quotes

• "The sale of the Borborema royalty to Gold Royalty Corp. is a disciplined capital allocation decision that supports our strategic priority of building sustainable cash flow from mining operations. Monetizing the royalty in a materially NAV-accretive (net asset value) transaction provides capital to advance our operating-focused initiatives, including the recently announced joint venture partnership with Westhaven, and to pursue additional opportunities that can generate meaningful, long-term cash flow for the corporation," — Jonathan Goodman, President and CEO, Dundee Corp.