MONTREAL, Aug. 19, 2021 /CNW/ - Nomad Royalty Company Ltd.
("Nomad" or the "Company") (TSX: NSR) (OTCQX: NSRXF)
is pleased to announce that it has entered into an agreement (the
"Agreement") with private vendors to acquire an effective
0.351% net smelter return royalty (the "Royalty") on the
producing Caserones mine located in the Atacama region of
Chile (the "Caserones
mine") for a cash consideration of US$27.25 million. Under the terms of the
Agreement, Nomad will be entitled to the Q2 dividend payment from
Compania Minera Caserones ("CMC") (expected during Q3). The
acquisition of the Royalty is in addition to the effective 0.28%
net smelter return royalty on the Caserones mine purchased in
May 2021. Following the completion of
the transaction, Nomad will hold an effective 0.63% net smelter
royalty on the Caserones mine, having invested a total of
US$50.25 million.
Transaction Highlights
- Increases exposure to a large scale producing mine in
Chile
- Increases royalty interest in a prudent and measured manner –
adding to existing asset
- Strengthens Nomad's free cash flow profile
- Greater exposure to an operating mine with a large land package
and in proximity of large copper discoveries:
-
- Los Helados – NGEX Minerals (10 kilometres)
- Josemaria – Josemaria Resources (20 kilometres)
- Filo del Sol – Filo Mining (28
kilometres)
- Continues to demonstrate Nomad's ability to source and execute
royalty transactions, with 6th acquisition since
June 2020
Caserones Royalty
The Royalty consists of an effective
0.351% net smelter return royalty on the tenements comprising
the Caserones mine, located on a land package of ~17,000
hectares.
Transaction Details
As part of the transaction, Nomad
will acquire shares representing a 37.5% ownership interest in CMC,
a private Chilean contractual mining company which holds the
payment rights to 32.5% of a 2.88% net smelter return royalty
on the Caserones mine. Upon closing, Nomad will become a registered
shareholder of CMC and will be party to a shareholders agreement
which provides for, among other things, distribution of all royalty
payments net of Chilean income taxes ("Share Acquisition").
Following the completion of the transaction, Nomad will hold 67.5%
of the shares of CMC.
As consideration for the Share Acquisition, Nomad will pay a
cash consideration of US$27.25
million (the "Cash Consideration") to the Vendors.
Nomad expects to fund the Cash Consideration through its revolving
credit facility.
Subject to certain conditions, including the registration in
Nomad's name of the shares of CMC being acquired by Nomad in the
shareholders registry of the Custodian of Mines of Santiago, Chile, the closing of the Share
Acquisition is expected in August or early September 2021.
Share Capital:
As at August 19,
2021, the Company had 56,655,818 common shares, 1,407,972
share options and 24,881,734 common share purchase warrants
outstanding entitling the holders to purchase 2,488,174 common
shares. The Company also had 209,879 restricted share units, 78,500
performance share units and 131,580 deferred share units
outstanding. Pursuant to the deferred payment payable to Yamana
Gold Inc. and based on the CAD $/US$ daily exchange rate
published by the Bank of Canada on
August 18, 2021, 1,403,272 common shares (on a
post-consolidated basis) would be issuable should the conversion
option be exercised on such date.
QUALIFIED PERSON
Vincent Cardin-Tremblay, P. Geo.,
Vice President, Geology of Nomad Royalty is the "Qualified Person"
as defined by NI 43-101 who has reviewed and approved the technical
content of this news release.
ABOUT NOMAD
Nomad Royalty Company Ltd. is a gold & silver royalty company
that purchases rights to a percentage of the gold or silver
produced from a mine, for the life of the mine. Nomad owns a
portfolio of 15 royalty and stream assets, of which 8 are on
currently producing mines. Nomad plans to grow and diversify its
low-cost production profile through the acquisition of additional
producing and near-term producing gold & silver streams and
royalties. For more information please visit:
www.nomadroyalty.com.
Nomad Royalty Company Ltd.
500-1275 ave. des Canadiens-de-Montréal
Montreal, Québec H3B
0G4
nomadroyalty.com
Forward-looking statements
Certain statements contained in this press release may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical fact, that address events or
developments that Nomad expects to occur, are forward looking
statements. Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by
the words "expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential", "scheduled" and similar
expressions, or that events or conditions "will", "would", "may",
"could" or "should" occur. Although Nomad believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance and actual results may differ materially from
those in forward looking statements. Factors that could cause the
actual results to differ materially from those in forward-looking
statements include the impossibility to satisfy all conditions
precedents for the closing of the Share Acquisition, the closing
date of the Share Acquisition, the benefit that Nomad will obtain
from the Share Acquisition, the impossibility to acquire royalties,
streams and to fund precious metal streams, gold prices, Nomad's
royalty and stream interests, access to skilled consultants,
results of mining operations, exploration and development
activities for properties with respect to which Nomad holds a
royalty or stream, uninsured risks, regulatory changes, defects in
title, availability of personnel, materials and equipment,
timeliness of government or court approvals, actual performance of
facilities, equipment and processes relative to specifications and
expectations, unanticipated environmental impacts on operations,
market prices, continued availability of capital and financing and
general economic, market or business conditions. Nomad cautions
that the foregoing list of important factors is not exhaustive.
Investors and others who base themselves on the forward looking
statements contained herein should carefully consider the above
factors as well as the uncertainties they represent and the risk
they entail. Nomad believes that the expectations reflected in
those forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be correct and
such forward-looking statements included in this press release
should not be unduly relied upon. These statements speak only as of
the date of this press release. Nomad undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, other
than as required by applicable law.
SOURCE Nomad Royalty Company Ltd.