TSXV: NOVR
OTCQB: NOVRF
(All dollar amounts are in United States Dollars unless otherwise
indicated)
VANCOUVER, BC, April 10,
2023 /CNW/ - Nova Royalty Corp. ("Nova"
or the "Company") (TSXV: NOVR) (OTCQB: NOVRF) is pleased to
announce that, further to its news release dated March 13, 2023, it has completed its acquisition
(the "Transaction") of an additional 0.03% net smelter
return ("NSR") royalty (the "Additional Royalty") on
the Copper World Complex project ("Copper World") located in
Arizona, USA, owned by Hudbay
Minerals Inc. (TSX: HBM) (NYSE: HBM). Nova now holds a 0.165% NSR
royalty on Copper World and retains a right of first refusal in
respect to an additional 0.510% NSR royalty on Copper World.
The aggregate purchase price for the Transaction included
upfront consideration of $340,000 in
cash and $170,000 in common shares of
Nova ("Consideration Shares"), of which Nova issued 161,307
Consideration Shares at C$1.4551 per
Consideration Share, calculated based on the twenty-day volume
weighted average trading price of the common shares of Nova up to
and including March 10, 2022.
An additional $890,000 in cash
will be payable as follows:
- $150,000 in cash, payable 12
months after closing of the Transaction; and
- $740,000 in cash, payable at the
later of: (i) 12 months following the announcement of the
commencement of production from the royalty area; and (ii) the
receipt by Nova of the first three payments under the Additional
Royalty.
Other terms of the Transaction were as disclosed in Nova's news
release dated March 13, 2023.
Nova has also completed its previously announced drawdown (the
"Drawdown") of an additional C$1.5
million (the "Drawdown Amount") under its existing
amended and restated convertible loan facility with Beedie Capital
(the "Beedie Capital Facility"). The Drawdown has increased
the total amount drawn under the Beedie Capital Facility to
C$9.5 million, with an additional
C$15.5 million remaining available to
the Company. The proceeds from the Drawdown will be used to fund
royalty acquisitions and for general corporate purposes.
The Drawdown Amount is convertible by Beedie Capital into
840,241 common shares of the Company at a conversion price of
C$1.7852 per common share, which is
based on a 20% premium above the 30-day volume-weighted average
price of the common shares of Nova on the TSX Venture Exchange
("TSXV") calculated up to and including March 9, 2023, in accordance with the terms of
the Beedie Capital Facility.
Update on CFO Transition
Further to the Company's news release dated February 23, 2023, the Company is pleased to
announce that Hashim Ahmed has
officially assumed the role of CFO of Nova, as of March 27, 2023.
Update on ATM Program
During the quarter ended March 31,
2023, Nova distributed 1,034,400 common shares of the
Company (the "Shares") under its at-the-market equity
program, at an average price of C$1.45 per Share, for gross proceeds of
C$1,499,880. A cash commission of
C$37,497 was paid to the agents,
resulting in net proceeds of C$1,462,383. This distribution was completed in
March 2023 and disclosed as part of
the Company's financial update in its Management's Discussion and
Analysis for the three and twelve months ended December 31, 2022, filed on sedar.com on
March 23, 2023.
About Nova
Nova Royalty Corp. is a copper-focused royalty company. Nova has
assembled a portfolio of royalties on a significant proportion of
the next generation of major copper projects located in 1st-tier
jurisdictions, providing investors exposure to some of the most
critical resource assets for the clean energy transition. These
projects are being advanced by the world's premier mining
companies, which include First Quantum, Lundin Mining, Hudbay,
Anglo American and Glencore, among
others. The Company is headquartered in Vancouver, British Columbia and is listed on
the TSX Venture Exchange under the trading symbol "NOVR" and on the
US OTCQB under the trading symbol "NOVRF".
On Behalf of Nova Royalty Corp.,
(signed) "Alex Tsukernik"
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
securities legislation. The forward-looking statements herein are
made as of the date of this press release only, and the Company
does not assume any obligation to update or revise them to reflect
new information, estimates or opinions, future events or results or
otherwise, except as required by applicable law. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects", "is expected", "budgets",
"scheduled", "estimates", "forecasts", "predicts",
"projects", "intends", "targets", "aims", "anticipates" or
"believes" or variations (including negative variations) of such
words and phrases or may be identified by statements to the effect
that certain actions "may", "could", "should", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking information
in this press release includes, but is not limited to, the
contingent payments with respect to the Transaction; future
commercial production, recoveries and other anticipated or possible
future developments on the Copper World project; the payment
frequency of the Additional Royalty; the use of proceeds from the
Drawdown. Forward-looking statements and information are subject to
various known and unknown risks and uncertainties, many of which
are beyond the ability of Nova to control or predict, that may
cause Nova's actual results, performance or achievements to be
materially different from those expressed or implied thereby, and
are developed based on assumptions about such risks, uncertainties
and other factors set out herein, including, but not limited to,
the risk factors set out under the heading "Risk Factors" in the
Company's annual information form dated March 23, 2023 available for review on the
Company's profile at www.sedar.com. Such forward-looking
information represents management's best judgment based on
information currently available. Except as required by applicable
securities laws, the Company undertakes no obligation to update
these forward-looking statements in the event that management's
beliefs, estimates or opinions, or other factors, should change. No
forward-looking statement can be guaranteed and actual future
results may vary materially. Accordingly, readers are advised not
to place undue reliance on forward-looking statements or
information.
SOURCE Nova Royalty Corp.