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iphone 7 case Sign in / Join NowSummaryGold Royalties just sold its most valuable asset to Franco Nevada in order to pay off its outstanding debt obligation to Callinan Royalties.The company is also issuing stock to Callinan Royalties.I hadn anticipated this and I think it has mixed consequences.The stock is incredibly inexpensive at this point in time but it won generate any interest until the gold price rises.Gold Royalties (OTC:GRYCF) just announced that it has sold its Eagle/Lynx royalty to Franco Nevada Gold (NYSE:FNV) for $7 million. This is the company’s most valuable royalty asset, although as I pointed out in my analysis of the company, the project is high risk at the current gold price given its large initial capex estimate along with its remote location in the Yukon.We also learned that the company is issuing 2.6 million shares to Callinan Royalties (OTCPK:CCNMF) and using most of the proceeds from this deal C$6.9 million ($5.9 million) in order to pay back its outstanding convertible debt.As I suggested in my analysis, Gold Royalties was trading like a “dead asset” and this became more of a reality as the gold price took another leg down as investors threw in the towel under the assumption that the Eagle Project will not be built and that this royalty is worthless. This is clearly not the case and given that Gold Royalties paid $9 million for the royalty in 2012 when the gold price was much higher it is faring extremely well. iphone 7 case
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