Golden Predator Announces Name Change to Gold Bullion Royalty Corp; Brewery Creek and Exploration Projects to be Divested to Shareholders

TSX:GPD
www.goldenpredator.com  

WHITEHORSE, YT, Jan. 18, 2013 /PRNewswire/ - Golden Predator Corp. (TSX: GPD) (the "Company") announces that it is changing the Company's name to Gold Bullion Royalty Corp. Gold Bullion Royalty Corp., focused entirely on royalty creation, intends to build on its existing portfolio of 34 projects to increase revenue and provide lower risk exposure to shareholders through a variety of gold and silver projects in which it will retain a royalty, metal stream or other interest.  The Company plans to divest Golden Predator Canada Corp. which will continue to advance the Brewery Creek Project as well as a number of other significant properties across the Yukon. This proposed segregation of its two main business components, by spin-out or other mechanism, is designed to maximize shareholder value by allowing the market to independently value two very different businesses.

This process is expected to occur by means of a plan of arrangement, dividend or other suitable method such that the shareholders as of the record date for the transaction will own both entities. The exact form and structure of this transaction will be determined following receipt of appropriate tax and legal advice. Management is confident that splitting these two business units into separate, independently staffed, entities will provide for increased efficiency, visibility, analysis and recognition of asset values which will ultimately provide superior returns for our shareholders.

About Gold Bullion Royalty Corp.

The Company's existing portfolio is highlighted by Gross Proceeds Royalties on Midway Gold's Pan and Gold Rock deposits, a 4% Gross Proceeds Royalty on the DTR property at Barrick's Bald Mountain Mine, and a 1% Gross Proceeds Royalty on over 30 square miles held by Barrick in an area between and around the Bald Mountain and Alligator Ridge mines.  In addition, the Company holds a 2% Net Smelter Return on the Taylor Silver project which is being advanced by Silver Predator Corp. The Company controls a royalty package of 34 North America properties, most of which are owned by Gold Bullion Royalty Corp. and under lease to a variety of companies including Evolving Gold, Orsa Ventures, Columbus Gold, Mt. Hamilton Area Joint Venture (Solitario Exploration & Royalty Corp. and Ely Gold & Minerals Corp.), and others. The royalty portfolio also includes several deeded royalties covering projects of McEwen Mining Inc., NV Gold Corporation, and Silver Scott Mines, Inc.  The entire package comprises more than 100,000 acres located primarily in Nevada, with 7 of the projects located in Wyoming, Oregon, California and Mexico. In 2012, the royalty packages generated $799,762 in revenue. Royalty revenue is anticipated to experience acceleration as early as 2014 as several of these projects begin to advance.

Gold Bullion Royalty Corp.'s royalty portfolio remains unique in the mineral development industry due to its ability to receive the majority of projected revenues in-kind (gold bullion as opposed to cash).  The core of the portfolio was acquired from the Lyle F. Campbell Trust; Lyle having been a very successful and acknowledged prospector and pioneer of the Carlin Trend in Nevada.  None of the principal royalty projects are subject to any reductions or buy-back provisions.

The Company plans to augment the existing portfolio through further royalty and or metal streaming opportunities.  The Board of Directors has initiated recruitment efforts for key executive and technical positions.

About Golden Predator Canada Corp

Golden Predator Canada Corp. will remain the Yukon's Gold Company, and will be mandated to become the Yukon's next gold producer by advancing its 100% owned Brewery Creek Project with a production goal of 2014. The Company has an extensive exploration portfolio in the Yukon including advanced road accessible assets at Clear Creek, Grew Creek and Gold Dome along with Cache Creek and Rogue projects in the Selwyn Basin.  Golden Predator Canada Corp. will continue to have one of the largest controlled land positions in the Yukon, and is proud of their demonstrated commitment to strong relationships with First Nations and local communities.

The Transaction

Details concerning specific transaction terms will be disclosed following tax and legal advice on the structure.

On closing of the transaction, shareholders of Gold Bullion Royalty Corp. as of the record date will hold the same percentage interest in Golden Predator Canada Corp. as they held in Gold Bullion Royalty Corp.  Golden Predator Canada Corp. intends to apply to list its common shares on the TSX Venture Exchange or the Toronto Stock Exchange following completion of the transaction.

The transaction is subject to, among other things, Board approval of the final structure and terms of the arrangement agreement, court approval, shareholder approval, and other regulatory approvals.  In addition it is anticipated the Company will change its jurisdiction of incorporation to Canadian Federal laws.  The name Gold Bullion Royalty Corp. is subject to final approval and may change.

Gold Bullion Royalty Corp. will hold a special meeting of shareholders to approve the transaction.  Further particulars, including the record and meeting dates, will be announced in due course and a complete description of the transaction will be set forth in a management information circular to be sent to shareholders of Gold Bullion Royalty Corp. in connection with the special meeting.

The technical content of this news release has been reviewed and approved by Michael Maslowski, BSc, CPG, the Company's Chief Operating Officer and a Qualified Person as defined by National Instrument 43‐101.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Golden Predator's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Golden Predator assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

SOURCE Golden Predator Corp.




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