TSXV: NOVR
OTCQB: NOVRF
(All dollar amounts are in United States Dollars unless otherwise
indicated)
VANCOUVER, BC, June 15,
2023 /CNW/ - Nova Royalty Corp. ("Nova"
or the "Company") (TSXV: NOVR) (OTCQB: NOVRF) is pleased to
announce that, further to its news release dated May 23, 2023, it has completed its acquisition
(the "Transaction") of an additional 0.12% 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 0.285% NSR
royalty on Copper World and retains a right of first refusal in
respect of an additional 0.390% NSR royalty on Copper World.
The aggregate purchase price for the Transaction included
upfront consideration of $1,360,000
in cash and $680,000 in common shares
of Nova ("Consideration Shares"), of which Nova issued
595,760 Consideration Shares at C$1.5412 per Consideration Share, calculated
based on the 20-day volume weighted average trading price of the
common shares of Nova up to and including May 19, 2023.
An additional $3,560,000 in cash
will be payable as follows:
- $600,000 in cash, payable 12
months after closing of the Transaction; and
- $2,960,000 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 disclosed in Nova's news
release dated May 23, 2023.
Nova has also completed its previously announced drawdown (the
"Drawdown") of an additional C$2.7
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$12.2 million, with an additional
C$12.8 million remaining available to
the Company. The proceeds from the Drawdown will be used to fund
the Additional Royalty acquisition and for general corporate
purposes.
The Drawdown Amount is convertible by Beedie Capital into
1,432,208 common shares of the Company at a conversion price of
C$1.8852 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 May 19, 2023, in accordance with the terms of the
Beedie Capital Facility. Any common shares issued or issuable will
be subject to a four-month hold period expiring on October 7, 2023, as required under applicable
securities legislation.
About Copper World (1,2)
The Copper World Complex is a large-scale, premier copper
development project located in Arizona, one of the
United States' most strategic copper districts. Copper World
is owned by Hudbay Minerals, an established operator with a proven
track record of success. Hudbay's 2022 preliminary economic
assessment of Copper World contemplates a two-phased operation,
with a Phase I standalone operation on private land expected to
span 16-years with average annual copper production of
approximately 86,000 tonnes, followed by an expanded Phase II mine
life of 44 years on federal lands. Copper World is expected to be
one of the next major copper operations in the United States, delivering the copper
needed to meet domestic electrification and decarbonization supply
chain needs. Hudbay expects to make a potential project sanction
decision in 2024, with a three-year build timeline.
Change to Board of Directors
Further to Nova's news release dated May
16, 2023 in which the Company announced changes to its
senior management, the Company has officially accepted the
resignation of Alex Tsukernik from
the Company's Board of Directors. Nova would like to reiterate its
appreciation to Mr. Tsukernik for his services and contributions to
the Company and wishes him all the best in his future
endeavors.
About Nova
Nova Royalty Corp. is a copper and nickel-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) "Hashim Ahmed"
Interim Chief Executive Officer
Phone: (647) 970-4113
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.
Notes:
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(1)
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Refer to Hudbay's NI
43-101 Technical Report entitled "Preliminary Economic Assessment
Copper World Complex, Pima County, Arizona USA" prepared by Olivier
Tavchandjian P.Geo, Vice-President, Exploration and Technical
Services, Hudbay. Effective as of May 1, 2022 and filed on SEDAR on
July 14, 2022.
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(2)
|
Refer to Hudbay
Minerals' Presentation titled "Copper World Complex 2022 PEA
Presentation". dated June 16, 2022.
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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, the
contingent payments with respect to the Transaction; future
commercial exploration and expansion potential, production,
recoveries and other anticipated or possible future developments on
the Copper World project, current commodity prices, the payment
frequency of the Additional Royalty, current and potential future
estimates of mineral reserves and resources; future commercial
production from the Copper World project or other designated areas;
and 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.