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Elemental: Gold Royalty seeks all the value

Gold Royalty, under the leadership of former Goldcorp head David Garofalo, has brought some dynamism to the royalty space, having completed several consolidation acquisitions in 2021 and rounding the year off with an unsolicited, all share hostile bid for Elemental Royalties. At the time the bid was made, Gold Royalty offered 0.27 shares of Gold Royalty for each Elemental Share, which it said valued the bid at C$1.78 per share, a premium of 37%, which implies a total equity value for Elemental of about C$130 million on a fully diluted, in-the-money basis.

Elemental: Gold Royalty seeks all the value Elemental: Gold Royalty seeks all the value Elemental: Gold Royalty seeks all the value Elemental: Gold Royalty seeks all the value Elemental: Gold Royalty seeks all the value

Elemental Royalties' CEO Frederick Bell

Elemental management and the board rejected the overture out of hand on the grounds that it significantly undervalues its business and unequivocally recommended that its shareholders reject the bid