Summit Royalty to go public in deal with Eagle Royalties

[Redator]

Summit Royalty, a precious metals-focused royalty and streaming company, will go public through a reverse takeover (RTO) of Canadian junior royalty firm Eagle Royalties (CNSX: ER).

The companies inked the amalgamation agreement on June 30 to create a new royalty and streaming entity with assets across North and South America and Africa. The combined portfolio will include over 40 royalty interests, with Eagle contributing critical metals, gold and industrial mineral royalties in Western Canada.

Eagle’s flagship asset is a royalty on Banyan Gold’s AurMac project in Yukon, where it holds between 0.5% and 2% net smelter return (NSR) on key deposits.

Summit president and director Drew Clark said Eagle’s portfolio, particularly its stake in AurMac and more than 35 other Canadian royalty interests, offers strong optionality that complements Summit’s cash-flowing assets. “We look forward to partnering with Eagle shareholders as we work to aggressively grow the business following the RTO,” Clark said.

Under the deal, Eagle will acquire Summit via a three-cornered amalgamation involving a newly formed subsidiary, Eagle Subco. Summit shareholders will receive five shares of the resulting public company for each Summit share held.

Following the transaction, and subject to shareholder and regulatory approvals, Eagle will be renamed Summit Royalty Corp., or a similar name proposed by Summit. The company will also change its stock exchange ticker symbol, with listing planned on either the CSE or the TSX Venture Exchange, depending on the outcome of discussions with the target exchange.