Vancouver-headquartered Nova Royalty, which is working towards a TSX-V-listing this fall, has entered into a royalty purchase agreement with Transition Metals, pursuant to which Nova will acquire a portfolio of nine royalties.
The portfolio includes an existing 1.0% net smelter return (NSR) royalty on the Janice Lake copper/silver project in Saskatchewan, being advanced by Rio Tinto Exploration Canada, a 1.0% NSR royalty on the Wollaston project, a 1.25% NSR royalty on the Dundonald nickel project, and six other highly prospective royalties on exploration properties in some of Canada's most mineralised districts.
"Scott McLean and his team have built an outstanding portfolio of properties in Canada. We are pleased to acquire this royalty portfolio and welcome Transition as a shareholder of Nova. Janice Lake is one of the most exciting emerging copper exploration projects in Canada, and we are keen to follow Rio Tinto's progress as it systematically explores the Wollaston Copper Belt. It is a natural fit for Nova's focus on royalties on district-scale copper and nickel projects,” comments Nova president and CEO Alex Tsukernik.
Nova will retain a right of first refusal on the sale of any of Transition’s retained NSR royalty interests on the Janice Lake, Dundonald, West Matachewan and the Elephant Head projects.
Nova's 1.0% Janice Lake NSR is subject to a right of the royalty pay or to buy back 0.375% of the royalty for C$750 000 prior to commercial production.
Nova has agreed to acquire the royalties for C$1.07-million in cash and the issuance of 52 000 common shares of Nova. Nova has also agreed to make additional contingent payments to Transition of up to C$2-million in cash and shares.