MONTREAL, July 27, 2020 /CNW Telbec/ - Nomad Royalty Company Ltd. ("Nomad" or the "Company") (TSX: NSR) and (OTCQX: NSRXF) is pleased to announce that it has entered into a royalty purchase agreement with a private vendor ("Vendor") to acquire an existing net smelter return royalty (the "Royalty") on the Troilus Gold project ("Troilus Gold Project" or the "Property") located in Québec, Canada (the "Royalty Purchase") for total consideration of approximately US$7.5 million (the "Purchase Price").
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 Québec, 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% 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 Frotêt-Evans Greenstone Belt in Québec, Canada, one of the world's top-rated mining jurisdictions. According to the Troilus Gold Corp. technical report on the Troilus Gold Project dated December 20, 2019, the current mineral resource estimate for the Property includes 4.71 million ounces of Indicated gold equivalent (159.1 Mt with an average grade of 0.92 g/t AuEq) and 1.76 million ounces of Inferred gold equivalent (52.7 Mt with an average grade of 1.04 g/t AuEq), with several new mineral growth targets identified. From 1996 to 2010, Inmet Mining Corporation operated the Troilus project as an open pit mine, producing more than 2,000,000 ounces of gold and nearly 70,000 tonnes of copper.
The Purchase Price shall be satisfied by Nomad paying approximately US$1.9 million (C$2.5 million) in cash and by the issuance of 5,769,231 units of the Company to the Vendor (the "Units"). Each Unit shall consist of one common share ("Common Share") of Nomad and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one Common Share of the Company at a price of C$1.75 per Common Share, for a period of 24 months following the closing date (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 C$2.19 for a period of 20 consecutive trading days, during the period following 4 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 August 4, 2020 and is subject to certain conditions including, but not limited to, receipt of all regulatory approvals, including the approval of the Toronto Stock Exchange.
Nomad Royalty Company Ltd. is a gold & 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 5 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 & silver streams and royalties. For more information please visit: www.nomadroyalty.com.
Nomad Royalty Company Ltd.
500-1275 ave. des Canadiens-de-Montréal
Montréal (Québec) H3B 0G4
Certain statements contained in this press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Nomad expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur including, without limitation, the satisfaction of all conditions precedent for the closing of the Royalty Purchase. Although Nomad believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include, the impossibility to satisfy the conditions precedent for closing the Royalty Purchase, the impossibility to acquire royalties, streams and to fund precious metal streams, gold prices, Nomad's royalty and stream interests, access to skilled consultants, results of mining operations, exploration and development activities for properties with respect to which Nomad holds a royalty or stream, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government or court approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations, market prices, continued availability of capital and financing and general economic, market or business conditions. Nomad cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the forward looking statements contained herein should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Nomad believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. Nomad undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.
SOURCE Nomad Royalty Company Ltd.
For further information: For more information about Nomad Royalty Company, please visit our website at www.nomadroyalty.com or email us: Vincent Metcalfe, CEO, [email protected]; Joseph de la Plante, CIO, [email protected]