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Nomad Royalty Company Ltd
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Shares Issued 566,231,380
Close 2021-04-07 C$ 1.00
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Nomad amends terms of Mercedes, South Arturo streams

2021-04-07 18:15 ET - News Release

Mr. Vincent Metcalfe reports


Nomad Royalty Company Ltd. has: (i) amended its Mercedes and South Arturo precious metal streams, including new gold delivery obligations; and (ii) repaid its gold prepay loan with Premier Gold Mines Ltd. in connection with the closing of the acquisition by Equinox Gold Corp. of Premier and the creation of a new United States-focused company called i-80 Gold Corp. that will own the South Arturo mine in Nevada, United States, amongst other U.S. assets previously held by Premier.

Nomad, through its wholly owned subsidiary OMF Fund II SO Ltd., has entered into a second amended and restated purchase and sale agreement (gold and silver) with certain subsidiaries of Equinox in respect of the Mercedes mine in Mexico and a new purchase and sale agreement (silver) with i-80 Gold in respect of the South Arturo mine. The key changes to the terms of the stream agreements are as follows.

New Mercedes gold and silver stream agreement and repayment of gold prepay agreement

The Mercedes stream agreement has been amended and restated and now provides for, in addition to silver deliveries, fixed quarterly gold deliveries of 1,000 ounces of refined gold to OMF from the Mercedes mine (subject to upward and downward adjustments in certain circumstances), plus an additional 6.5 per cent of such adjusted amount payable in refined gold. Fixed quarterly gold deliveries shall terminate once an aggregate of 9,000 ounces of gold have been delivered (not including any refined gold received pursuant to the additional 6.5 per cent of the adjusted amount). If the quarterly average gold price is greater than $1,650 (U.S.) per ounce in any quarter, then the aggregate gold quantity deliverable in the next quarter is reduced by 100 ounces of refined gold, and if the quarterly average gold price is less than $1,350 (U.S.) per ounce, then the aggregate gold quantity deliverable is increased by 100 ounces of refined gold. Concurrently with the completion of the arrangement and entering into of the Mercedes stream agreement, the gold prepay agreement has been terminated.

The Mercedes stream agreement will continue to provide for a 100-per-cent silver stream on the Mercedes mine until 3.75 million ounces (2.73 million ounces as of March 31, 2021) of silver have been delivered to OMF, as well as minimum annual deliveries of 300,000 ounces of silver until 2.1 million ounces (1.5 million ounces as of March 31, 2021) of silver have been delivered to OMF.

South Arturo silver stream agreement

OMF and i-80 Gold have entered into a new South Arturo stream agreement that provides for deliveries from i-80 Gold to OMF of 100 per cent of the ounces of refined silver in attributable production from the existing mineralized areas at South Arturo and 50 per cent of ounces of refined silver in attributable production from the exploration stream area.

Other developments

In addition, the parties to the Mercedes stream agreement have agreed to make certain amendments to the existing RDM royalty agreement over the Riacho dos Machados gold mine located in the northern part of Minas Gerais, Brazil, which royalty is held by Nomad with Mineracao Riacho dos Machados, a wholly owned subsidiary of Equinox.

Qualified person

Vincent Cardin-Tremblay, PGeo, vice-president, geology, of Nomad Royalty is the qualified person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.

About Nomad Royalty Company Ltd.

Nomad 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 14 royalty and stream assets, of which six are on currently producing mines. Nomad plans to expand 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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