TSXV: NOVR
OTCQB: NOVRF
(All dollar amounts are in United States Dollars unless otherwise
indicated)
VANCOUVER, BC, June 29,
2023 /CNW/ - Nova Royalty Corp. ("Nova"
or the "Company") (TSXV: NOVR) (OTCQB: NOVRF) is pleased to
announce that it has entered into an agreement (the
"Agreement") with an arm's length private party (the
"Seller") pursuant to which Nova will acquire an existing
0.25% net smelter return ("NSR") royalty (the
"Royalty"), on the Tatogga Property ("Tatogga"),
which contains the Saddle North copper-gold-silver deposit
("Saddle North") located in British Columbia, Canada, owned by Newmont
Corporation ("Newmont") (NYSE: NEM) (TSX: NGT). Nova will
also be granted a Right of First Refusal (the "ROFR") with
respect to an additional 0.25% NSR royalty owned by the Seller
covering the same area as the Royalty (collectively, the
"Transaction").
Hashim Ahmed, Nova's Interim CEO,
commented, "The acquisition of the Tatogga Royalty further
demonstrates Nova's ability to execute on our strategy of sourcing
and securing royalties on high-quality copper projects from third
party holders. The Saddle North deposit has a significant
copper-gold-silver resource and is situated in B.C.'s Golden
Triangle, one of Canada's premier
mining camps. Additionally, Tatogga is owned by Newmont, an
industry-leading mining company with a proven track record of
success. We view this Transaction as an accretive acquisition that
improves both the quality and value of Nova's portfolio."
Transaction Highlights
- Saddle North is a large-scale resource in a top-tier
jurisdiction with the potential to become a significant copper and
gold producer.
- Newmont is one of the world's most prolific mining companies,
with a proven track record of discovering, developing, and
operating world-class assets.
- The potential merger between Newmont and Newcrest Mines Limited
("Newcrest"), which owns 70% of the nearby Red Chris copper-gold mine ("Red Chris"), has the potential to unlock
synergies for the development of Saddle North and the larger
Tatogga property.
- The Royalty covers nearly 37,000 hectares in British Columbia's Golden Triangle, one of
Canada's premier mining camps,
with considerable upside potential from additional
exploration.
Royalty Description
The Royalty is part of a broader, existing 2.00% NSR royalty
(the "2.00% NSR") on Tatogga. The Seller is the sole legal
and beneficial owner of 50% of the 2.00% NSR, thereby owning a
1.00% NSR royalty on Tatogga (the "Seller's Interest").
The Seller's Interest is subject to a 50% buyback right in
favour of Newmont (the "Buyback"), which, if exercised,
would reduce the Seller's Interest to a 0.50% NSR royalty.
Pursuant to the Agreement, Nova will acquire a 0.25% NSR Royalty
from the Seller and will be granted a ROFR in respect to an
additional 0.25% NSR Royalty, which in aggregate is equivalent to
100% of the Seller's Interest after providing for the Buyback.
Nova's Royalty portion is not subject to the Buyback.
The Royalty applies to the sale of any and all minerals produced
and sold from a portfolio of mining claims that covers a surface
area of approximately 36,700 hectares and comprises the entirety of
Tatogga and Saddle North (the "Royalty Area"). A map of the
Royalty Area is included in this press release.
Saddle North Overview
Saddle North is a gold-rich copper porphyry deposit located in
the Golden Triangle in northwest British
Columbia, Canada. Before being acquired by Newmont in 2021,
Saddle North was owned by GT Gold Corp. ("GT Gold"), which
published a maiden resource estimate for Saddle North in 2020,
which included 1.81 billion pounds of copper, 3.47 million ounces
of gold, and 7.58 million ounces of silver contained in Indicated
Resources, and 2.98 billion pounds of copper, 5.46 million ounces
of gold, and 11.64 million ounces of silver contained in Inferred
Resources.(1)
The last reported mineral resource estimates for Saddle North
are as follows:
Tatogga Project Saddle North Mineral Resources Amenable to
Open Pit Mining Methods(1)
|
Average Grade
|
Contained Metal
|
Material Type
|
Category
|
Tonnes (Mt)
|
Cu
(%)
|
Au (g/t)
|
Ag (g/t)
|
CuEq (%)
|
Cu (Mlbs)
|
Au (Koz)
|
Ag (Koz)
|
CuEq (Mlbs)
|
Transition
|
Indicated
|
21
|
0.15
|
0.16
|
0.5
|
0.24
|
72
|
108
|
340
|
112
|
Inferred
|
13
|
0.20
|
0.12
|
0.6
|
0.27
|
58
|
49
|
260
|
76
|
Fresh
|
Indicated
|
196
|
0.26
|
0.30
|
0.7
|
0.42
|
1,105
|
1,906
|
4,210
|
1,808
|
Inferred
|
241
|
0.22
|
0.25
|
0.5
|
0.35
|
1,174
|
1,907
|
4,090
|
1,877
|
Total
|
Indicated
|
217
|
0.25
|
0.29
|
0.7
|
0.40
|
1,177
|
2,014
|
4,550
|
1,920
|
Inferred
|
254
|
0.22
|
0.24
|
0.5
|
0.35
|
1,232
|
1,956
|
4,350
|
1,953
|
Tatogga Project Saddle North Mineral Resources Amenable to
Underground Mining Methods(1)
|
Average Grade
|
Contained Metal
|
Material Type
|
Category
|
Tonnes (Mt)
|
Cu (%)
|
Au (g/t)
|
Ag (g/t)
|
CuEq (%)
|
Cu (Mlbs)
|
Au (Koz)
|
Ag (Koz)
|
CuEq (Mlbs)
|
Fresh
|
Indicated
|
81
|
0.35
|
0.56
|
1.2
|
0.65
|
632
|
1,457
|
3,030
|
1,168
|
Inferred
|
289
|
0.27
|
0.38
|
0.8
|
0.48
|
1,750
|
3,499
|
7,290
|
3,039
|
Tatogga Project Saddle North Mineral Resources for Combined Mining
Methods(1)
|
Average Grade
|
Contained Metal
|
Material Type
|
Category
|
Tonnes (Mt)
|
Cu (%)
|
Au (g/t)
|
Ag (g/t)
|
CuEq (%)
|
Cu (Mlbs)
|
Au (Koz)
|
Ag (Koz)
|
CuEq (Mlbs)
|
Total
|
Indicated
|
298
|
0.28
|
0.36
|
0.8
|
0.47
|
1,809
|
3,471
|
7,580
|
3,088
|
Inferred
|
543
|
0.25
|
0.31
|
0.7
|
0.42
|
2,982
|
5,455
|
11,640
|
4,992
|
Mineralization at Saddle North remains open at depth and to the
northwest and southeast. Additional upside potential exists from
near-mine exploration, with the larger Tatogga property
demonstrating early signs of district potential. Furthermore, the
proximity of Saddle North and Red
Chris creates the potential for development and operating
synergies, which may positively impact Saddle North if the
potential merger between Newmont and Newcrest is successfully
completed.
Transaction Details and Financing
The aggregate purchase price for the Transaction is $3,750,000 and will be paid as follows:
- $1,000,000 in cash, payable upon
closing of the Transaction; and
- $2,750,000 in common shares of
Nova (the "Consideration Shares"), payable upon closing of
the Transaction.
The number of Consideration Shares to be issued in connection
with the Transaction will be based on the 20-day volume weighted
average trading price on the TSX Venture Exchange ("TSXV")
of Nova's common shares prior to the effective date of the
Definitive Agreement. Nova anticipates paying for the cash
portion of the purchase price from existing cash on hand.
The Transaction is subject to the acceptance of the TSXV.
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:
|
|
(1)
|
Refer to GT Gold's NI
43-101 Technical Report entitled "NI 43-101 Technical Report on the
Saddle North Copper-Gold Project, Tatogga Property" prepared by
Richard Flynn, P.Geo, Next Mine Consulting. Effective as of July 6,
2020 and filed under GT Gold's profile on SEDAR on August 20,
2020.
|
Technical and Third-Party Information
Except where otherwise stated, the disclosure in this press
release relating to Saddle North are based on information publicly
disclosed by the current or former owners or operators of the
respective properties and information/data available in the public
domain as at the date hereof and none of this information has been
independently verified by nova. Nova has limited, if any, access to
the properties on which Nova holds a royalty, stream or
other interest. The Company may from time to time receive
operating information from the owners and operators of the mining
properties, which it is not permitted to disclose to the public.
Nova is dependent on (i) the operators of the mining properties and
their qualified persons to provide information to Nova, or (ii)
publicly available information to prepare disclosure pertaining to
properties and operations on the properties on which Nova holds
royalty or other interests, and generally has limited or no ability
to independently verify such information. 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 reported public information in respect of a
mining property may relate to a larger property area than the area
covered by Nova's royalty or other interest. Nova's royalty or
other interests may cover less than 100% of a specific mining
property and sometimes may only apply to a portion of the publicly
reported mineral reserves, mineral resources and or production from
a mining 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.
"Inferred mineral resources" have a great amount of uncertainty
as to their existence and great uncertainty as to their economic
and legal feasibility. It cannot be assumed that all or any part of
an inferred mineral resource will ever be upgraded to a higher
category. Historical results or feasibility models presented herein
are not guarantees or expectations of future performance.
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 Saddle North
project, including, without limitation, exploration and
development activities; current commodity prices; the payment
frequency of the Royalty; current and potential future estimates of
mineral reserves and resources; future commercial production from
the Saddle North project or other designated areas; the attainment
of any required regulatory approval for the Transaction; closing of
the Transaction; exercise of the ROFR; closing of the potential
merger between Newmont and Newcrest; realization of synergies as a
result of such potential merger, including, without limitation,
synergies between Tatogga and Red
Chris and development of the Saddle North and larger
Tatogga property. 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 that the exploration and expansion potential, production,
recoveries and other anticipated or possible future developments
on the Saddle North project, including, without limitation,
exploration and development activities will not occur or be as
anticipated; that the required regulatory approvals for the
Transaction are not obtained; that the Transaction will not close;
that the ROFR will not be exercised; that the payment frequency of
the Royalty and the future commercial production from the Saddle
North project or other designated areas will not be as
anticipated; that the current and potential future estimates of
mineral reserves and resources will not be accurate; and 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.