Business News – Premier Royalty Inc announces purchase agreement for 15 million shares

Dryden Chamber of Commerce, Thunder Bay Chamber of Commerce Harold Wilson Business Thunder Bay

THUNDER BAY – Business News -Premier Royalty Inc, has announced  that the company  has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. and including CIBC World Markets Inc., RBC Capital Markets, Canaccord Genuity Corp., Stonecap Securities Inc., National Bank Financial Inc., and Mackie Research Capital Corporation (collectively, the “Underwriters”), with PowerOne Capital Markets Limited acting as a selling group member, to purchase on a bought deal basis, 15,000,000 common shares (the “Shares”) of the Company at a price of $2.00 per Share, for aggregate gross proceeds of $30,000,000.

The Underwriters will also have the option, exercisable in whole or in part at any time up to 30 days after the closing of the offering, to purchase up to an additional 2,250,000 Shares. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the offering will be $34,500,000.

The Company plans to use the net proceeds from the offering for the acquisition of royalties and for general corporate purposes. The Shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada (other than the Province of Quebec) pursuant to National Instrument 44-101 – Short Form Prospectus Distributions and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

The offering is scheduled to close on or about January 17, 2013 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

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