TSX-V-listed Nova Royalty has increased its royalty position on the Copper World Complex project, in Arizona, with the acquisition of an additional 0.03% net smelter return (NSR) royalty.
Nova will now hold 0.165% royalty on Copper World, owned by Hudbay Minerals, and its right of first refusal in respect to an additional 0.54% will reduce to 0.51% NSR upon completion of the transaction.
“Copper World represents one of the largest and most strategic copper districts in the United States and is being steadily advanced by Hudbay Minerals toward a construction decision,” comments Nova president and CEO Alex Tsukernik.
The additional royalty has the same characteristics as the 0.135% royalty on Copper World already owned by Nova and covers all metals, including copper, molybdenum, silver, and gold extracted from most mining claims. The aggregate purchase price for the transaction is $1.4-million.
Further, Nova has announced that it will draw down an additional C$1.5-million under its existing amended and restated convertible loan facility with Beedie Capital. The proceeds will be used to fund royalty acquisitions and for general corporate purposes.
The drawdown will increase the total amount drawn under the Beedie capital facility to C$9.5-million, with an additional C$15.5-million remaining available to the company.
The drawdown is convertible by Beedie Capital into 840 241 common shares of the company at a conversion price of C$1.7852 a 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-V calculated up to and including March 9.
Beedie currently owns ten-million common shares of Nova, having increased its position in the company by about one-million common shares since December 31, 2022.