Gold Royalty Corp. has agreed to acquire a net smelter royalty on the Borborema gold mine and property from Dundee Corporation for total consideration of US$45 million, comprising US$30 million in cash and the issuance of 3,571,429 new common shares. The transaction, expected to close in January 2026 subject to customary conditions, increases Gold Royalty’s exposure to a high-quality asset operated by Aura Minerals Inc.

The newly acquired royalty carries a 1.5% NSR on the first 1.5 million ounces of payable gold and 1.0% on the next 0.5 million ounces, thereafter expiring. This complements Gold Royalty’s existing 2.0% NSR (stepping down to 0.5% after 725,000 ounces) and optional 0.5% top-up royalty on Borborema. The combined royalties provide near-term cash flow potential as the mine ramps to design capacity of 4,500 tonnes per day, with Q4 2025 production of 15,777 gold equivalent ounces—54% higher than the prior quarter.

Under a mutual cooperation agreement, Taurus Mining Royalty Fund will invest US$22.5 million to acquire a 50% economic interest in the newly acquired royalty. Taurus’ participation, subject to final documentation and closing conditions, reduces Gold Royalty’s net cash outlay and underscores institutional support for the company’s disciplined capital deployment strategy.

The Borborema Project, located in Rio Grande do Norte State, Brazil, reached commercial production on September 22, 2025, and is currently operating at 80% of design capacity. By increasing its royalty interest, Gold Royalty deepens its presence in a proven mining jurisdiction and leverages strong operator performance to enhance portfolio diversification and long-term returns for shareholders.