Gold Royalty acquires Pedra Branca NSR from BlackRock in $70M deal, adding BHP’s Brazil mine to portfolio

The NYSE American–listed company secures a high-margin royalty over the copper-gold Pedra Branca mine in Brazil’s Carajás region, fully funding the acquisition through a $70 million bought-deal financing.

Gold Royalty Corp. (NYSE-A: GROY) has agreed to acquire an existing royalty over the Pedra Branca copper-gold mine in Brazil from BlackRock World Mining Trust in a US$70 million cash transaction, further expanding its exposure to long-life, tier-one copper and gold assets.

Pedra Branca, located in Água Azul do Norte in Brazil’s prolific Carajás mineral district, is currently operated by BHP Group (ASX: BHP) and forms part of the company’s Carajás East operations.

In a statement, Gold Royalty said the deal strengthens both revenue and net asset value by adding a cash-flowing royalty with meaningful leverage to copper at a time when long-term fundamentals for the metal remain robust.

High-margin NSR royalty over gold and copper

Under the terms of the agreement, Gold Royalty will acquire:

• A 25% net smelter return (NSR) royalty on gold, and
• A 2% NSR royalty on copper and other products

produced from Pedra Branca, covering both the Pedra Branca East and Pedra Branca West deposits.

Gold Royalty’s chairman and CEO David Garofalo said the acquisition of the Pedra Branca royalty “represents an immediate and material addition” to the company’s cash flows.

For the 12 months ended June 30, the royalty expense paid to the previous holder totalled approximately US$7.9 million, equivalent to around 2,800 gold-equivalent ounces at an average gold price of US$2,811/oz, the company noted.

Upon closing, Gold Royalty’s portfolio will comprise eight cash-flowing assets and a pipeline of over 250 royalty and streaming interests, underscoring its strategy to build scale and diversification across the Americas.

Fully funded via $70M bought-deal equity financing

To fund the transaction, Gold Royalty announced a US$70 million bought-deal financing, matching the purchase price of the Pedra Branca royalty.

Led by National Bank Capital Markets, BMO Capital Markets and RBC Capital Markets as joint bookrunners, the company plans to issue 17.5 million common shares at US$4.00 per share.

Despite the strategic rationale, the financing weighed on market sentiment in the short term. Gold Royalty’s shares closed Monday’s session down 9.5% at US$3.85, implying a market capitalization of approximately US$758.3 million.

Pedra Branca: from Avanco to Oz Minerals to BHP

The Pedra Branca mine has undergone several ownership changes over the past decade:

• 2018 – Oz Minerals acquired the Carajás East portfolio, including Pedra Branca, from fellow Australian miner Avanco Resources.
• 2020 – Oz Minerals brought the Pedra Branca East deposit into production.
• 2022 – The underground operation ramped up to full production.
• 2023 – BHP took control of Pedra Branca through its takeover of Oz Minerals, later extending the mine life and reporting increases in mineral resources and reserves.

According to BHP’s June 2025 annual report, Pedra Branca hosts:

• 2.4 million tonnes of measured material grading 1.68% copper and 0.47 g/t gold, and
• 12 million tonnes of indicated material grading 1.41% copper and 0.40 g/t gold.

These grades and tonnages underpin a longer-term production profile, reinforcing the strategic appeal of the royalty for Gold Royalty.

Ownership transition to CoreX, royalty remains in place

In August 2025, BHP announced an agreement for CoreX Holding BV, an industrial conglomerate backed by Turkish billionaire Robert Yuksel Yildirim, to acquire Pedra Branca and BHP’s other Carajás copper assets in a deal worth up to US$465 million.

The transaction is currently subject to customary closing conditions. Regardless of the operating owner, the NSR royalty acquired by Gold Royalty will continue to apply to production from Pedra Branca, providing ongoing exposure to future mine life extensions and potential resource growth.