TSXV: NOVR
OTCQB: NOVRF
(All dollar amounts are in United States Dollars unless otherwise
indicated)
VANCOUVER, BC, July 11,
2023 /CNW/ - Nova Royalty Corp. ("Nova"
or the "Company") (TSXV: NOVR) (OTCQB: NOVRF) is pleased to
announce that, further to its news release dated July 5, 2023, it has completed its acquisition
(the "Transaction") of an additional 0.03% net smelter
return ("NSR") royalty (the "Additional Royalty") on
the Copper World Complex project ("Copper World") located in
Arizona, USA, owned by Hudbay
Minerals Inc. ("Hudbay") (TSX: HBM) (NYSE: HBM). Nova now
holds a 0.315% NSR royalty on Copper World and retains a right of
first refusal in respect of an additional 0.360% NSR royalty on
Copper World (the "ROFR").
The aggregate purchase price for the Transaction included
upfront consideration of $340,000 in
cash and $170,000 in common shares of
Nova ("Consideration Shares"), of which Nova issued 134,646
Consideration Shares at C$1.6716 per
Consideration Share, calculated based on the 20-day volume weighted
average trading price of the common shares of Nova up to and
including the effective date of the Transaction agreement.
An additional $890,000 in cash
will be payable as follows:
- $150,000 in cash, payable 12
months after closing of the Transaction; and
- $740,000 in cash, payable at the
later of: (i) 12 months following the announcement of the
commencement of production from the royalty area; and (ii) the
receipt by Nova of the first three payments under the Additional
Royalty.
Other terms of the Transaction were disclosed in Nova's news
release dated July 5, 2023.
Update on ATM Program
During the quarter ended June 30,
2023, Nova distributed 1,029,000 common shares of the
Company (the "Shares") under its at-the-market
("ATM") equity program at an average price of C$1.74 per Share, for gross proceeds of
C$1,786,150. A cash commission of
C$44,654 was paid to the agents,
resulting in net proceeds of C$1,741,496. Proceeds from the ATM program will
be used to fund royalty acquisitions and for general corporate
purposes.
About Copper
World (1,2)
The Copper World Complex is a large-scale, premier copper
development project located in Arizona, one of the
United States' most strategic copper districts. Copper World
is owned by Hudbay, an established operator with a proven track
record of success. Hudbay's 2022 preliminary economic assessment of
Copper World contemplates a two-phased operation, with a Phase I
standalone operation on private land and patented mining claims
expected to span 16-years with average annual copper production of
approximately 86,000 tonnes, followed by an expanded Phase II mine
life of 44 years on federal lands. Copper World is expected to be
one of the next major copper operations in the United States, delivering the copper
needed to meet domestic electrification and decarbonization supply
chain needs. Hudbay expects to make a potential project sanction
decision in 2024, with a three-year build timeline.
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:
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(1)
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Refer to Hudbay's NI
43-101 Technical Report entitled "Preliminary Economic Assessment
Copper World Complex, Pima County, Arizona USA" prepared by Olivier
Tavchandjian P.Geo, Vice-President, Exploration and Technical
Services, Hudbay, effective as of May 1, 2022 and filed on SEDAR on
July 14, 2022.
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(2)
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Refer to Hudbay's
Presentation titled "Copper World Complex 2022 PEA Presentation".
dated June 16, 2022.
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Technical and Third-Party
Information
Except where otherwise stated, the disclosure in this press
release relating to Copper World 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, the
contingent payments with respect to the Transaction; future
commercial exploration and expansion potential, production,
recoveries and other anticipated or possible future developments on
the Copper World project, including, without limitation, Hudbay's
decision on exploration, development and production activities and
the implementation, results and timing thereof; Hudbay's intended
objectives with respect to the Copper World project; current
commodity prices; the payment frequency of the Additional Royalty;
current and potential future estimates of mineral reserves and
resources; future commercial production from the Copper World
project or other designated areas; the exercise of the ROFR; and
the use of proceeds from the sale of Shares. 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, development, production, recoveries and other
anticipated or possible future developments on the Copper World
project, including, without limitation, a decision on
exploration,development and production activities will not occur
or be as anticipated and that Hudbay will not achieve its intended
objectives with respect to the Copper World Project; that the ROFR
will not be exercised; that the payment frequency of the Royalty
and the future commercial production from the Copper World 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.