TSXV: NOVR
OTCQB: NOVRF
(All dollar amounts are in
Transaction Highlights
- Saddle North is a large-scale resource in a top-tier jurisdiction with the potential to become a significant copper and gold producer.
- Newmont is one of the world's most prolific mining companies, with a proven track record of discovering, developing, and operating world-class assets.
- The potential merger between
Newmont and Newcrest Mines Limited ("Newcrest "), which owns 70% of the nearby Red Chris copper-gold mine ("Red Chris"), has the potential to unlock synergies for the development of Saddle North and the larger Tatogga property. - The Royalty covers nearly 37,000 hectares in
British Columbia's Golden Triangle , one ofCanada's premier mining camps, with considerable upside potential from additional exploration.
Royalty Description
The Royalty is part of a broader, existing 2.00% NSR royalty (the "2.00% NSR") on Tatogga. The Seller is the sole legal and beneficial owner of 50% of the 2.00% NSR, thereby owning a 1.00% NSR royalty on Tatogga (the "Seller's Interest").
The Seller's Interest is subject to a 50% buyback right in favour of Newmont (the "Buyback"), which, if exercised, would reduce the Seller's Interest to a 0.50% NSR royalty.
Pursuant to the Agreement, Nova will acquire a 0.25% NSR Royalty from the Seller and will be granted a ROFR in respect to an additional 0.25% NSR Royalty, which in aggregate is equivalent to 100% of the Seller's Interest after providing for the Buyback. Nova's Royalty portion is not subject to the Buyback.
The Royalty applies to the sale of any and all minerals produced and sold from a portfolio of mining claims that covers a surface area of approximately 36,700 hectares and comprises the entirety of Tatogga and Saddle North (the "Royalty Area"). A map of the Royalty Area is included in this press release.
Saddle North Overview
Saddle North is a gold-rich copper porphyry deposit located in
The last reported mineral resource estimates for Saddle North are as follows:
Tatogga Project Saddle North Mineral Resources Amenable to Open Pit Mining Methods(1)
Average Grade | Contained Metal | |||||||||
Material Type | Category | Tonnes (Mt) | Cu (%) | Au (g/t) | Ag (g/t) | CuEq (%) | Cu (Mlbs) | CuEq (Mlbs) | ||
Transition | Indicated | 21 | 0.15 | 0.16 | 0.5 | 0.24 | 72 | 108 | 340 | 112 |
Inferred | 13 | 0.20 | 0.12 | 0.6 | 0.27 | 58 | 49 | 260 | 76 | |
Fresh | Indicated | 196 | 0.26 | 0.30 | 0.7 | 0.42 | 1,105 | 1,906 | 4,210 | 1,808 |
Inferred | 241 | 0.22 | 0.25 | 0.5 | 0.35 | 1,174 | 1,907 | 4,090 | 1,877 | |
Total | Indicated | 217 | 0.25 | 0.29 | 0.7 | 0.40 | 1,177 | 2,014 | 4,550 | 1,920 |
Inferred | 254 | 0.22 | 0.24 | 0.5 | 0.35 | 1,232 | 1,956 | 4,350 | 1,953 |
Tatogga Project Saddle North Mineral Resources Amenable to Underground Mining Methods(1)
Average Grade | Contained Metal | |||||||||
Material Type | Category | Tonnes (Mt) | Cu (%) | Au (g/t) | Ag (g/t) | CuEq (%) | Cu (Mlbs) | CuEq (Mlbs) | ||
Fresh | Indicated | 81 | 0.35 | 0.56 | 1.2 | 0.65 | 632 | 1,457 | 3,030 | 1,168 |
Inferred | 289 | 0.27 | 0.38 | 0.8 | 0.48 | 1,750 | 3,499 | 7,290 | 3,039 |
Tatogga Project Saddle North Mineral Resources for Combined Mining Methods(1)
Average Grade | Contained Metal | |||||||||
Material Type | Category | Tonnes (Mt) | Cu (%) | Au (g/t) | Ag (g/t) | CuEq (%) | Cu (Mlbs) | CuEq (Mlbs) | ||
Total | Indicated | 298 | 0.28 | 0.36 | 0.8 | 0.47 | 1,809 | 3,471 | 7,580 | 3,088 |
Inferred | 543 | 0.25 | 0.31 | 0.7 | 0.42 | 2,982 | 5,455 | 11,640 | 4,992 |
Mineralization at Saddle North remains open at depth and to the northwest and southeast. Additional upside potential exists from near-mine exploration, with the larger Tatogga property demonstrating early signs of district potential. Furthermore, the proximity of Saddle North and Red Chris creates the potential for development and operating synergies, which may positively impact Saddle North if the potential merger between Newmont and
Transaction Details and Financing
The aggregate purchase price for the Transaction is
$1,000,000 in cash, payable upon closing of the Transaction; and$2,750,000 in common shares of Nova (the "Consideration Shares"), payable upon closing of the Transaction.
The number of Consideration Shares to be issued in connection with the Transaction will be based on the 20-day volume weighted average trading price on the
The Transaction is subject to the acceptance of the TSXV.
On Behalf of
(signed) "Hashim Ahmed"
Interim Chief Executive Officer
Phone: (647) 970-4113
Neither the
Notes: | |
(1) | Refer to |
Technical and Third-Party Information
Except where otherwise stated, the disclosure in this press release relating to Saddle North 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
"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, exploration and expansion potential, production, recoveries and other anticipated or possible future developments on the Saddle North project, including, without limitation, exploration and development activities; current commodity prices; the payment frequency of the Royalty; current and potential future estimates of mineral reserves and resources; future commercial production from the Saddle North project or other designated areas; the attainment of any required regulatory approval for the Transaction; closing of the Transaction; exercise of the ROFR; closing of the potential merger between Newmont and
SOURCE
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