by Adriano Marches
Shares of Elemental Royalty Corp closed 1.8% higher on Wednesday after its board of directors recommended that shareholders reject Gold Royalty Corp’s offer for its shares.
On Tuesday, Gold Royalties said it would offer Elemental shareholders 0.27 common shares of Gold Royalty for each Elemental share, representing a value of 1.78 Canadian dollars per share, equivalent to 79 US cents.
At that price, the acquisition offer would be worth C$130 million.
At the close, Elemental Royalty shares rose 3 cents to C$1.70.
After the market closed on Tuesday, Elemental Royalty said its board of directors has recommended that its shareholders disallow the acquisition of all unsolicited shares.
The company said it will review alternative strategic options that may have more compelling value to its shareholders than offering gold royalties.
The offer from Vancouver-based precious metals-focused royalty and streaming company Gold Royalty is open for approval until April 27.
Write to Adriano Marchese at [email protected]