TSXV: NOVR
OTCQB: NOVRF
West Wall
West Wall is a copper-gold-molybdenum porphyry deposit located in the
As of
Mineral Resource Statement as at
Tonnes | Grade | Contained Metal (Kt) | |||||
Classification | Mt | Cu (%) | Mo (%) | Au (g/t) | Cu (kt) | Mo (kt) | Au (koz) |
Indicated | 861 | 0.51 | 0.009 | 0.05 | 4,391 | 77 | 1,519 |
Inferred | 1,072 | 0.42 | 0.006 | 0.05 | 4,502 | 64 | 1,891 |
Anglo American reported a maiden inferred resource at West Wall, focused exclusively on the Lagunillas zone, on
The West Wall project is located in the same geological belt as some of
A map of the region is shown below.
A map of the
Transaction Details
Under the terms of the Agreement, Auromín assigned Nova all of the rights granted to Auromín (the "Participation"), as defined in a Participation Agreement between Auromín and a subsidiary of Anglo American, concerning West Wall and any other mining tenements established as designated areas in the surrounding region (the "Participation Agreement").
The Participation Agreement provides that, upon the fulfillment of certain conditions, including Anglo American making a production decision at West Wall, a sociedad contractual minera ("SCM") will be incorporated, and into which the mining tenements corresponding to the Project will be transferred. The owner of the Participation will be issued shares in the SCM, which will give such owner an 8.0% interest in the SCM. Subsequently, if one or more mines is brought into production for West Wall or another designated area, Anglo American will repurchase from the owner of the Participation the shares in the SCM that correspond to a 7.0% interest in the SCM for a predetermined price, leaving the owner of the Participation with a 1.0% interest in the SCM, which entitles the owner to a 1.0% net proceeds of production royalty from West Wall. A SCM will be similarly established for any other designated area within the scope of the Participation Agreement, giving the owner of the Participation the same rights as stated above with respect to such designated areas.
All payments resulting from the repurchase by Anglo American of the 7.0% interest in the SCM will be reimbursed in full to Auromín. Nova will retain sole ownership of 1.0% of the shares in the SCM, which entitle the owner of such shares to the 1.0% net proceeds of production royalty from the Project or such other designated area, as the case may be, which will not be subject to repurchase by Anglo American.
Nova has agreed to pay a finder's fee to an arm's length person totaling two percent (2%) of the Transaction value based on a volume weighted average trading price of the common shares of the Company prior to the date of closing which will represent an issuance of 30,748 common shares of the Company (the satisfaction of the finder's fee in shares is subject to the acceptance of the
At-the-Market Equity Program
The Company is also pleased to provide an update on its At-the-Market Equity Program ("ATM Program"). As of the date of this news release, Nova has sold 1,593,700 common shares at an average price of
Qualified Person
Technical information contained in this news release originates in the public disclosure set out above and has been reviewed and approved by
About Nova
Nova is a royalty company focused on providing investors with exposure to the key building blocks of clean energy – copper and nickel. The Company is headquartered in
ON BEHALF OF NOVA ROYALTY CORP.,
(signed) "Alex Tsukernik"
President and Chief Executive Officer
Phone: (604) 696-4241
Email: info@novaroyalty.com
Website: www.novaroyalty.com
Neither the
Notes: | |
(1) | Mineral Resource is reported within an economic pit shell at a copper cut-off. Contained copper and molybdenum metal as reported by Anglo American. Contained gold metal calculated by Nova based on tonnage and gold grade reported by Glencore. |
(2) |
See Anglo American |
TECHNICAL AND THIRD-PARTY INFORMATION
Except where otherwise stated, the disclosure in this press release relating to the West Wall project is based on information publicly disclosed by the owners or operators of this property and information/data available in the public domain as at the date hereof and none of this information has been independently verified by Nova. Specifically, as a royalty holder, Nova has limited, if any, access to the property subject to the Royalty. 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 information publicly reported by the operator may relate to a larger property than the area covered by the Royalty. Nova's royalty interests often cover less than 100% and sometimes only a portion of the publicly reported mineral reserves, mineral resources and production of a property.
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, exploration and expansion potential, production, recoveries and other anticipated or possible future developments on the West Wall project, current and potential future estimates of mineral reserves and resources; future commercial production from the West Wall project or other designated areas; and the attainment of required regulatory approval to the acquisitions of the Royalty. 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 factors set out under the heading "Risk Factors" in the Company's final non-offering long form prospectus dated
SOURCE
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