Mr. Vincent Metcalfe reports
NOMAD ENTERS INTO AGREEMENT TO ACQUIRE ROYALTY ON THE TROILUS GOLD PROJECT IN QUEBEC
Nomad Royalty Company Ltd. has entered into a royalty purchase agreement with a private vendor to acquire an existing net smelter return royalty on the Troilus gold project located in Quebec, Canada, for total consideration of approximately $7.5-million (U.S.).
Joseph de la Plante, chief investment officer of Nomad, commented on the transaction: "We are very pleased to announce the acquisition of a royalty on a brownfield deposit that continues to demonstrate significant potential for resource expansion. Furthermore, the addition of the Troilus royalty now adds Quebec, Canada, one of the world's premier mining jurisdictions, to Nomad's portfolio and further diversifies our growing list of jurisdictions where we own precious metal royalties and streams."
The royalty consists of a 1-per-cent net smelter return royalty on all metals and minerals produced from 81 mineral claims and one surveyed mining lease comprising the property. The Troilus gold project is an advanced gold exploration project located within the Frotet-Evans greenstone belt in Quebec, Canada, one of the world's top-rated mining jurisdictions. According to the Troilus Gold Corp. technical report on the Troilus gold project dated Dec. 20, 2019, the current mineral resource estimate for the property includes 4.71 million ounces of indicated gold equivalent (159.1 million tonnes with an average grade of 0.92 gram per tonne gold equivalent) and 1.76 million ounces of inferred gold equivalent (52.7 million tonnes with an average grade of 1.04 grams per tonne gold equivalent), with several new mineral growth targets identified. From 1996 to 2010, Inmet Mining Corp. operated the Troilus project as an open-pit mine, producing more than two million ounces of gold and nearly 70,000 tonnes of copper.
The purchase price shall be satisfied by Nomad paying approximately $1.9-million (U.S.) ($2.5-million) in cash and by the issuance of 5,769,231 units of the company to the vendor. Each unit shall consist of one common share of Nomad and one-half of one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share of the company at a price of $1.75 per common share for a period of 24 months following the closing date of the royalty purchase. The warrants shall be callable by the company such that, should the daily volume-weighted average trading price of the common shares on the Toronto Stock Exchange exceed $2.19 for a period of 20 consecutive trading days during the period following four months from the closing date until the expiry date of the warrants, the company shall have the right to give notice in writing to the holders of the warrants that the warrants shall expire on that day which is 30 days following the date of such notice unless exercised by the holders prior to such date.
The royalty purchase is scheduled to close on or before Aug. 4, 2020, and is subject to certain conditions, including, but not limited to, receipt of all regulatory approvals, including the approval of the TSX.
About Nomad Royalty Company Ltd.
Nomad Royalty Company is a gold and 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 10 royalty, stream and gold loan assets, of which five are on currently producing mines. Nomad plans to grow and diversify its low-cost production profile through the acquisition of additional producing and near-term producing gold and silver streams and royalties.
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