Nomad Royalty (TSX:NSR) Company Ltd announced that it acquired a gold stream on the tier-one Platreef palladium-rhodium-platinum-nickel-copper-gold project located in Limpopo, South Africa from Ivanplats (TSX:IVP) Ltd — a 65% owned subsidiary of Ivanhoe Mines Ltd. (TSX:IVN, OTCQX:IVPAF)
The Montreal-based exploration company said that it will provide $75 million in gold stream funding to Ivanplats (TSX:IVP) as a part of a $200 million gold stream co-investment with Orion Mine Finance.
"Ivanhoe is an established, experienced, and proven mine operator and developer. Nomad is thrilled to partner with Ivanhoe to provide the financing needed to develop one of the best-known precious and green metals deposits in the world,” said Vincent Metcalfe, CEO of Nomad, in a statement.
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He added: “Having the ability to support the construction of Platreef in becoming a leading producer of 'green metals' critical for many clean technologies ties well with Nomad's values of supporting the transition to a green economy. With a reserve life of over 30 years, we expect the Platreef gold stream will be a long-term cornerstone asset for Nomad."
Orion will also separately provide $100 million under a palladium and platinum stream for total stream funding of $300 million to Ivanplats (TSX:IVP) to fund a large portion of the phase 1 capital costs for Platreef, with initial production scheduled in 2024, the company said.
"This transaction is consistent with Nomad's strategy of adding high-quality, near-term cash-flowing assets to our portfolio and also demonstrates the strength of Nomad's partnerships with Orion Mine Finance, a leading global investment management firm," Joseph de la Plante, chief information officer of Nomad said.
The company said that it is expected that Platreef will be the lowest cost platinum group metal producer with projected cash costs of $460 per ounce of platinum, palladium, rhodium and gold as net of by-products.
Nomad Royalty (TSX:NSR) is a gold and 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 15 royalty and stream assets, of which eight are currently producing mines.
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