Nova Royalty Corp announced that it has completed its acquisition of a 1% net smelter return (NSR) royalty on the Aranzazu mine, a copper-silver-gold operation in Mexico owned by Aura Minerals.
The US$9 million deal was comprised of $8 million in cash and a further $1 million in Nova shares.
To satisfy the transaction, Nova issued 388,093 consideration shares at $3.26 per share.
READ: Nova Royalty upsizes offering to C$12.7M for Aranzazu acquisition
Nova said will pay a US$180,000 finder’s fee to Antares Capital Management comprised of cash and shares.
Aranzazu produced 9.5 million pounds (Mlbs) copper equivalent at cash costs of $1.90/lb during 2Q 2021 and 11.7 Mlbs copper equivalent at cash costs of $1.46/lb during Q1 2021.
The operation is projected to produce between 22.8 and 27.5 Mlbs copper equivalent during the second half of 2021.
In addition, Nova said it granted just over 2.6 million stock options to officers, directors, employees and consultants to purchase shares as part of its share compensation plan.
Each option grant vests in two equal installments, twelve and twenty-four months from the date of issue. Each option is exercisable, once vested, for a period of five years from the date of grant at an exercise price of C$3.30 per common share.
Separately, Nova reported a cash balance of just over C$710,000 at the end of 2Q 2021 after the Aranzazu deal, according to its quarterly financial statements. Subsequent to the quarter to end June 2021, the group closed a C$13.7 million offering.
Vancouver-based Nova has a portfolio of royalties on some of the world’s leading copper and nickel development projects.
Contact Angela at angela@proactiveinvestors.com
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