TSXV: NOVR
OTCQB: NOVRF
VANCOUVER, BC, May 4, 2023
/CNW/ - Nova Royalty Corp. ("Nova" or the
"Company") (TSXV: NOVR) (OTCQB: NOVRF) is pleased to provide
an update on its investment in the Vizcachitas project. Nova holds
a net smelter return ("NSR") royalty of 0.98% on open pit
operations and 0.49% on underground operations on the San José
1/3000 exploitation concession that forms part of the Vizcachitas
project in Chile.
Nova has been notified that Los Andes Copper Ltd. (TSX-V:LA)
("LAC"), the 100% owner of the Vizcachitas project
("Vizcachitas"), has filed a Pre-Feasibility Study
("PFS") for Vizcachitas on April 11,
2023, representing a significant milestone in the
advancement of the project. The PFS, titled "Vizcachitas Project
Pre-Feasibility Study Valparaíso Region, Chile NI 43-101 Technical
Report" dated March 30, 2023 with an
effective date of February 20, 2020,
was prepared for LAC by Tetra Tech, and has been filed under LAC's
profile at www.sedar.com.
LAC reported highlights(1) of the PFS in a press
release dated April 11, 2023, which
include:
- Proven and Probable Reserves of 1.22 billion tonnes at 0.36%
copper, 136 parts per million ("ppm") molybdenum, 1.1
grams per tonne ("g/t") silver, which equates to a copper
equivalent ("CuEq") grade of 0.40%(2).
-
- Proven Reserves of 302 million tonnes (Mt) at 0.41% copper, 135
ppm molybdenum, 1.2 g/t silver;
- Probable Reserves of 918 Mt at
0.34% copper, 136 ppm molybdenum, 1.1 g/t silver.
- Measured and Indicated Resources of 14.8 billion pounds
CuEq.
-
- Measured Resources of 2.605 billion pounds copper, 84 million
pounds molybdenum and 11 million ounces silver;
- Indicated Resources of 10.416 billion pounds copper, 442
million pounds molybdenum, and 43 million ounces silver; and
- Inferred Resources of 15.4 billion pounds CuEq (13.747
billion pounds copper, 495 million pounds molybdenum, 55 million
ounces silver).
- Initial Life of Mine ("LOM") of 26 years producing 8.763
billion pounds copper, 273.3 million pounds molybdenum and 32.7
million ounces silver, based on a new plant design with a mill
throughput of 136,000 tonnes per day.
- Annual average copper production of 183,017 tonnes for the
first eight years (LOM average of 152,883 tonnes of copper).
Milestone Payment
Pursuant to Nova's royalty purchase agreement with RCF VI CAD
LLC (see Nova news releases February
10 and June 10, 2021 for
additional information), an affiliate of Resource Capital Funds VI
L.P. ("RCF VI"), the Company issued 1,361,936 shares (the
"Consideration Shares") to RCF VI (reflecting a milestone
payment in the amount of US$1,500,000
satisfied in common shares of Nova and priced based on a 30-day
volume weighted average trading price up to and including
April 14, 2023). The Consideration
Shares will be subject to a 4-month hold period.
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.
Technical and Third-Party
Information
Except where otherwise stated, the disclosure in this press
release relating to the Vizcachitas project is based on information
publicly disclosed by the owners or operators of this property and
information/data available in the public domain as at the date
hereof and none of this information has been independently verified
by Nova. Specifically, as a royalty holder, Nova has limited, if
any, access to the property subject to the NSR. Although Nova does
not have any knowledge that such information may not be accurate,
there can be no assurance that such third party information is
complete or accurate. Some information publicly reported by the
operator may relate to a larger property than the area covered by
the NSR. Nova's royalty interests often cover less than 100% and
sometimes only a portion of the publicly reported mineral reserves,
mineral resources and production of a property.
Unless otherwise indicated, the technical and scientific
disclosure contained or referenced in this press release, including
any references to mineral resources or mineral reserves, was
prepared in accordance with Canadian National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101").
Canadian standards for public disclosure of scientific and
technical information concerning mineral projects differ
significantly from the requirements of the U.S. Securities and
Exchange Commission under subpart 1300 of Regulation S-K (the
"SEC Modernization Rules"). Nova is not currently subject to
the SEC Modernization Rules. Accordingly, the scientific and
technical information contained or referenced in this press release
may not be comparable to similar information made public by U.S.
companies subject to the reporting and disclosure requirements of
the SEC. Modernization Rules.
(1)
|
Please refer to notes
in the technical report titled "Vizcachitas Project Pre-Feasibility
Study Valparaíso Region, Chile NI 43-101 Technical Report" dated
March 30, 2023 with an effective date of February 20, 2020,
prepared for LAC by Tetra Tech, and filed under Los Andes Copper
Corp.'s profile at www.sedar.com.
|
(2)
|
Copper equivalent grade
has been calculated using the following formula: CuEq (%) = Cu (%)
0.000288 x Mo (ppm) + 0.00711 x Ag (g/t), using the metal prices:
US$3.68/lb Cu, US$12.9/lb Mo and US$21.79/oz Ag, with metallurgical
recoveries of 91.1% for copper, 74.8% for molybdenum and 75% for
silver based on the PFS metallurgical testwork.
|
Qualified Person
Technical information contained in this press release originates
in the public disclosure set out above and has been reviewed and
approved by Christian Rios, AIPG
Certified Professional Geologist, Advisor to Nova and a Qualified
Person as defined in NI 43-101.
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, exploration
and expansion potential, production, recoveries and other
anticipated or possible future developments on the Vizcachitas
project, current and potential future estimates of mineral reserves
and resources; future commercial production from the Vizcachitas
project. 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 and other filings 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.