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(Wallace Refiners) – Nomad Royalty (TSX: NSR) (OTCQX: NSRXF) announced Thursday that it has entered into an agreement to acquire an effective 0.28% net smelter return royalty on the producing Caserones copper mine located in the Atacama region of Chile for a cash consideration of US$23 million as well as the issuance of two million common share purchase warrants of the company.
The Caserones mine is owned and operated by Minera Lumina Copper Chile, which is indirectly owned by JX Nippon Mining & Metals Corporation. The mine consists of an open pit mining operation, with a plant to produce copper and molybdenum concentrates from primary sulfides, and a solvent extraction and electro winning plant (SX-EW) to produce copper cathodes with oxide ore processing, mixed and secondary sulfides.
In 2019, the Caserones mine produced 146kt Cu and 2,778t of Mo with expected life of mine average annual payable production of ~148kt Cu Eq. Nomad noted that the mine has a long reserve life and significant exploration potential, located on a large land package of ~17,000 hectares with potential for future expansions.
Nomad said that this deal provides the company with measured exposure to copper, a key metal in supporting the world’s green transition away from fossil fuels and towards electrification.
CEO Vincent Metcalfe commented, “The Caserones royalty provides Nomad with immediate cash flow over a very long mine life from Chile, a tier 1 mining jurisdiction. This transaction highlights Nomad’s unique positioning within the royalty space in terms of its financial capacity to acquire high quality royalties and is consistent with Nomad’s strategy of building a diversified portfolio of high-quality cash flowing royalties and streams.”
Nomad Royalty 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 14 royalty, and stream, assets, of which 7 are on currently producing mines.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Wallace Precious Metals The author has made every effort to ensure accuracy of information provided; however, neither Wallace Precious Metals nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Wallace Precious Metals and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.