Golden Predator Announces Name Change to Gold Bullion Royalty Corp; Brewery Creek and Exploration Projects to be Divested to Shareholders
WHITEHORSE, YT, Jan. 18, 2013 /PRNewswire/ – Golden Predator Corp. (TSX: GPD) (the “Company”) announces that it is changing the Company’s name to
Gold Bullion Royalty Corp. Gold Bullion Royalty Corp., focused entirely
on royalty creation, intends to build on its existing portfolio of 34
projects to increase revenue and provide lower risk exposure to
shareholders through a variety of gold and silver projects in which it
will retain a royalty, metal stream or other interest. The Company
plans to divest Golden Predator Canada Corp. which will continue to
advance the Brewery Creek Project as well as a number of other
significant properties across the Yukon. This proposed segregation of
its two main business components, by spin-out or other mechanism, is
designed to maximize shareholder value by allowing the market to
independently value two very different businesses.
This process is expected to occur by means of a plan of arrangement,
dividend or other suitable method such that the shareholders as of the
record date for the transaction will own both entities. The exact form
and structure of this transaction will be determined following receipt
of appropriate tax and legal advice. Management is confident that
splitting these two business units into separate, independently
staffed, entities will provide for increased efficiency, visibility,
analysis and recognition of asset values which will ultimately provide
superior returns for our shareholders.
About Gold Bullion Royalty Corp.
The Company’s existing portfolio is highlighted by Gross Proceeds
Royalties on Midway Gold’s Pan and Gold Rock deposits, a 4% Gross
Proceeds Royalty on the DTR property at Barrick’s Bald Mountain Mine,
and a 1% Gross Proceeds Royalty on over 30 square miles held by Barrick
in an area between and around the Bald Mountain and Alligator Ridge
mines. In addition, the Company holds a 2% Net Smelter Return on the
Taylor Silver project which is being advanced by Silver Predator Corp.
The Company controls a royalty package of 34 North America properties,
most of which are owned by Gold Bullion Royalty Corp. and under lease
to a variety of companies including Evolving Gold, Orsa Ventures,
Columbus Gold, Mt. Hamilton Area Joint Venture (Solitario Exploration &
Royalty Corp. and Ely Gold & Minerals Corp.), and others. The royalty
portfolio also includes several deeded royalties covering projects of
McEwen Mining Inc., NV Gold Corporation, and Silver Scott Mines, Inc.
The entire package comprises more than 100,000 acres located primarily
in Nevada, with 7 of the projects located in Wyoming, Oregon,
California and Mexico. In 2012, the royalty packages generated $799,762
in revenue. Royalty revenue is anticipated to experience acceleration
as early as 2014 as several of these projects begin to advance.
Gold Bullion Royalty Corp.’s royalty portfolio remains unique in the
mineral development industry due to its ability to receive the majority
of projected revenues in-kind (gold bullion as opposed to cash). The core of the portfolio was
acquired from the Lyle F. Campbell Trust; Lyle having been a very
successful and acknowledged prospector and pioneer of the Carlin Trend
in Nevada. None of the principal royalty projects are subject to any
reductions or buy-back provisions.
The Company plans to augment the existing portfolio through further
royalty and or metal streaming opportunities. The Board of Directors
has initiated recruitment efforts for key executive and technical
About Golden Predator Canada Corp
Golden Predator Canada Corp. will remain the Yukon’s Gold Company, and will be mandated to become the Yukon’s next gold producer by
advancing its 100% owned Brewery Creek Project with a production goal
of 2014. The Company has an extensive exploration portfolio in the
Yukon including advanced road accessible assets at Clear Creek, Grew
Creek and Gold Dome along with Cache Creek and Rogue projects in the
Selwyn Basin. Golden Predator Canada Corp. will continue to have one
of the largest controlled land positions in the Yukon, and is proud of
their demonstrated commitment to strong relationships with First
Nations and local communities.
Details concerning specific transaction terms will be disclosed
following tax and legal advice on the structure.
On closing of the transaction, shareholders of Gold Bullion Royalty
Corp. as of the record date will hold the same percentage interest in
Golden Predator Canada Corp. as they held in Gold Bullion Royalty
Corp. Golden Predator Canada Corp. intends to apply to list its common
shares on the TSX Venture Exchange or the Toronto Stock Exchange
following completion of the transaction.
The transaction is subject to, among other things, Board approval of the
final structure and terms of the arrangement agreement, court approval,
shareholder approval, and other regulatory approvals. In addition it
is anticipated the Company will change its jurisdiction of
incorporation to Canadian Federal laws. The name Gold Bullion Royalty
Corp. is subject to final approval and may change.
Gold Bullion Royalty Corp. will hold a special meeting of shareholders
to approve the transaction. Further particulars, including the record
and meeting dates, will be announced in due course and a complete
description of the transaction will be set forth in a management
information circular to be sent to shareholders of Gold Bullion Royalty
Corp. in connection with the special meeting.
The technical content of this news release has been reviewed and
approved by Michael Maslowski, BSc, CPG, the Company’s Chief Operating
Officer and a Qualified Person as defined by National Instrument
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein. This
press release contains projections and forward-looking information that
involve various risks and uncertainties regarding future events. Such
forward-looking information can include without limitation statements
based on current expectations involving a number of risks and
uncertainties and are not guarantees of future performance. There are
numerous risks and uncertainties that could cause actual results and
Golden Predator’s plans and objectives to differ materially from those
expressed in the forward-looking information. Actual results and future
events could differ materially from those anticipated in such
information. These and all subsequent written and oral forward-looking
information are based on estimates and opinions of management on the
dates they are made and are expressly qualified in their entirety by
this notice. Except as required by law, Golden Predator assumes no
obligation to update forward-looking information should circumstances
or management’s estimates or opinions change.
SOURCE Golden Predator Corp.