Nova to acquire royalty on Newmont’s Saddle North
TSX-V-listed Nova Royalty has announced it will acquire an existing 0.25% net smelter return (NSR) royalty on the Tatogga property, which contains Newmont Gold’s Saddle North copper/gold/silver deposits in British Columbia.
The company was also granted a right of first refusal with respect to an additional 0.25% NSR royalty covering the same area, covering nearly 37 000 ha.
The royalty is part of a broader, existing 2.00% NSR royalty on Tatogga. The seller is the sole legal and beneficial owner of 50% of the 2.00% NSR royalty, thereby owning a 1.00% NSR royalty on Tatogga.
Nova notes that the potential merger between Newmont and Newcrest Mines, which owns 70% of the nearby Red Chris copper/gold mine, has the potential to unlock synergies for the development of Saddle North and the larger Tatogga property.
“We view this transaction as an accretive acquisition that improves both the quality and value of Nova's portfolio,” commented Nova interim CEO Hashim Ahmed.
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