02:27 PM EDT, 05/28/2024 (MT Newswires) -- Gold Royalty ( GROY ) said Tuesday it entered an agreement to acquire a copper stream from the Vares silver project in Bosnia and Herzegovina.

Gold Royalty ( GROY ) said it entered the agreement with OMF Fund III, an entity managed by Orion Mine Finance Management.

The company will pay $50 million for the copper stream, made up of $45 million in cash and $5 million in company shares.

The mine is operated by a subsidiary of Adriatic Metals.

In a separate release, Gold Royalty ( GROY ) said it was raising $30 million via an equity offering.

The company will issue 17,442,000 units to a syndicate of underwriters at $1.72 apiece.

Each unit will be made up of one common share and one share purchase warrant, with each warrant exercisable into a stock of the company at $2.25 for a period of 3 years.

The offering is expected to close by Friday and the underwriters have an option to buy up to an additional $4.5 million worth of the units.

Gold Royalty ( GROY ) said it would use proceeds from the equity offering, as well as borrowing under its revolving credit facility, to fund the copper stream agreement.

The shares of the company fell 15% in recent trading.

Price: 1.63, Change: -0.29, Percent Change: -14.95