Sailfish Royalty sells royalties, triples dividend

Executive Summary

• Sailfish Royalty Corp. has entered into a share purchase agreement to sell its wholly-owned subsidiary, Terraco Gold Corp., to OR Royalties Inc. for $168 million (U.S.) in after-tax cash.
• The transaction involves the sale of royalties on the Spring Valley and Moonlight gold projects in Nevada, representing a disposition of more than 50% of Sailfish's assets.
• Concurrently, Sailfish announced a tripling of its annual dividend to 15 U.S. cents per share (paid quarterly at 3.75 cents), citing the capital proceeds and its remaining royalty portfolio.

Key Details

• Transaction Structure: Share purchase agreement for all issued and outstanding shares of Terraco Gold Corp.
• Counterparties: Seller: Sailfish Royalty Corp. (via Terraco Gold Corp.); Buyer: OR Royalties Inc.
• Consideration: $168 million (U.S.) in after-tax cash, payable on closing.
• Assets Disposed:
  • Up to 3% net smelter return (NSR) royalty on Solidus Resources' Spring Valley gold project in Pershing County, Nevada.
  • 2% NSR royalty on Solidus Resources' Moonlight property in Nevada.
• Financial Performance: The sale price is approximately 5.4 times the original purchase price paid in August 2019, generating an Internal Rate of Return (IRR) of approximately 29%.
• Regulatory Status: Constitutes a reviewable transaction under TSX Venture Exchange Policy 5.3; requires TSX-V acceptance and shareholder approval (requisite shareholder approval already obtained via written consent).
• Advisers: National Bank Financial Inc. (Financial Adviser); INFOR Financial Group (Strategic Adviser).
• Dividend Policy Change:
  • New annual dividend: 15 U.S. cents per share (tripled from 5 U.S. cents).
  • Payment structure: Quarterly dividends of 3.75 U.S. cents per common share.
  • First payment date: July 15, 2026.
  • Record date: March 31, 2026.
  • Management expects the dividend to be covered by the remaining royalty and stream portfolio, with plans to redeploy capital into high-returning precious metals streams and royalties.

Notable Quotes

• "Sailfish is pleased to announce the sale of the royalties associated with the Spring Valley and Moonlight projects in Nevada for $168-million (U.S.) in cash, after tax. This is approximately 5.4 times the purchase price we paid in August, 2019, which generated an IRR of approximately 29 per cent." — Akiba Leisman, Executive Chairman