Eagle Royalties up 25% on RTO agreement with Summit news
Summit Royalty Corp. and Eagle Royalties Ltd. [ER-CSE] said they have entered into a definitive agreement in relation to a proposed reverse takeover transaction. Under the agreement, Summit will go public via a reverse takeover of Eagle.
Eagle Royalties shares soared on the news, gaining 25% or $0.03 to 15 cents. The shares trade in a 52-week range of 16 cents and $0.085.
“We are excited to announce this RTO with Eagle as we move toward a public listing and the combination of two strong royalty portfolios,” said Summit President and director Drew Clark. “Eagle’s portfolio of royalties, notably including a royalty on a portion of Banyan Gold Co.’s (BYN-TSXV) 7.0 million-ounce AurMac Gold Project, coupled with over 35 royalty interests predominantly in Canada, will provide excellent optionality that will complement our cash-flowing portfolio,” he said. “We look forward to partnering with Eagle shareholders as we work to aggressively grow our business after we closer the RTO.’’
Under the agreement, Eagle Subco will amalgamate with Summit under Section 174 of the Business Corporations Act to form one corporation. The security holders of Summit will receive securities of the resulting issuer in exchange for their securities at an exchange ratio of five resulting issuer shares for each outstanding share of Summit.
The exchange ratio implies an estimated consideration of 18 cents per Eagle share, representing a premium of 47% on Eagle’s closing price on June 30, 2025, on the Canadian Securities Exchange.
As part of the RTO, and subject to any required shareholder and regulatory approvals, Eagle will change its name to Summit Royalty Corp., or such other name as may be requested by Summit. Eagle will also change its stock exchange ticker symbol to a symbol to be determined between the parties and acceptable to the target stock exchange on which the shares of the resulting issuer will trade (which may be the CSE or TSX Venture Exchange as may be determined by Summit.
The board of directors of Eagle and Summit have determined that the RTO is fair to the shareholders of both companies.
The AurMac gold project is located in the Mayo Mining district, 356 kilometres north of Whitehorse. It lies adjacent to Hecla Mining’s [HL-NYSE] high grade Keno Hill Silver mine. The AurMac project is transected by the main Yukon highway and access road to the Victoria Gold open-pit, heap leach Eagle Gold mine.
AurMac consists of the Aurex and McQuesten projects. Banyan can earn a 100% interest in both properties, subject to royalties.
Eagle Royalties holds royalty interests ranging from 0.5% to 2.0% (with no buy down provision) on numerous claims underlying Banyan’s Airstrip and Powerline inferred resource areas. Banyan recently launched a 30,000-metre dill program at the site.