Nomad Royalty (TSX:NSR) Company Ltd said it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets (NYSE:BMO), under which the underwriters have agreed to buy on bought deal basis 4,400,000 common shares, at a price of C$9.10 each for gross proceeds of approximately C$40 million.
The net proceeds of the offering will be used to support the company’s recently announced acquisitions of streams on the Greenstone Gold project and the Platreef palladium-rhodium-platinum-nickel-copper-gold project, and for general corporate purposes.
The company said it has granted the underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the offering, to purchase up to an additional 15% of the offering to cover over-allotments, if any.
The offering is expected to close on or about January 20, 2022, and is subject to Nomad receiving all necessary regulatory approvals.
READ: Nomad Royalty pays first US$13.3M under Greenstone gold deal and updates on asset portfolio
The common shares will be offered by way of a prospectus supplement to the company’s base shelf prospectus dated September 30, 2020, which is expected to be filed with the securities commissions and other similar regulatory authorities in each of the provinces of Canada on or about January 13, 2022.
The securities offered have not been registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
Nomad 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.
It owns a portfolio of 16 royalty and stream assets, of which 8 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.
Contact the author at jon.hopkins@proactiveinvestors.com