- Nova Royalty (OTCQB:NOVRF) intends to offer shares for total gross proceeds of ~C$10M at C$3.3/share.
- For the offering, the company plans to enter into an agency agreement wherein agents granted a 30-day option to purchase up to additional 15% of the shares.
- Net proceeds to be used for the acquisition (Aranzazu NSR) of the net smelter return on the copper, gold and silver production from the Aranzazu project which is subject to an underlying 1.0% net smelter return royalty.
- The Aranzazu project is owned by Aura Minerals and comprises 22 mining concessions.
- Offer expected to close on or about Aug.25.
- Separately, the company entered into a royalty purchase agreement with Macocozac post which the company will acquire an existing 1.0% net smelter return royalty on the Aranzazu copper-gold-silver mine in Zacatecas, Mexico for $9M ($8M in cash, $1M in shares).
- Aranzazu is expected to produce between 22.8 and 27.5 Mlbs CuEq during 2H21.
- Under agreement terms, Nova will be entitled to 100% of the payments from the Royalty corresponding to the net smelter returns generated at Aranzazu post June 30; expects to receive royalty payments on a semi-annual basis.