FULL DISCLOSURE: Canacom Group is long the equity of Nations Royalty.
A fresh royalty company, Nations Royalty Corp (TSXV: NRC) is set to begin trading this morning on the TSX Venture. The venture aims to provide a means for investors to capitalize on what it calls the last untapped royalty space – royalties granted to First Nations groups under Benefit Agreements.
The aim of the new streamer is to offer a means for First Nations and Indigenous groups to monetize royalties, income and commodity streams, and annual benefit payment entitlements that they have obtained from resource projects.
The company’s initial assets include five royalties under four agreements entered into by the Nisga’a Nation, a major shareholder of the entity. Highlights of its assets, all of which are located in B.C.’s Golden Triangle, include:
- Brucejack Mine: Operated by Pretium Resource, the underground copper-silver mine is a currently producing asset.
- Premier Gold Project: Operated by Ascot Resources, commercial production is slated to begin in the third quarter, with first gold pour having occurred in April.
- Red Mountain Gold: Another project operated by Ascot, near to its Premier Mine.
- KSM: In development by SeaBridge Gold, the project exposes Nations Royalty to copper, gold, silver and molybdenum.
- Kitsault: A fully permitted brownfield site focused on molybdenum being advanced by New Moly LLC.
Collectively, the five royalty assets are said to have a net asset value of approximately US$214 million. Current revenue projections call for revenue of US$4.0 million in 2024, which is expected to grow to US$52 million by 2032, based on the current assets of the firm and projected production timelines.
Nisga’a Nation currently owns approximately 76.8% of the issuer, via holdings of 111.1 million common shares. The group, as part of its ownership, is entitled to nominate four persons to the Board of the company, Other major shareholders include Frank Giustra, founder of the entity that became Goldcorp, as well as Wheaton Precious Metals, who’s Fiore Group holds a 15.6% interest in the company. Both groups of major shareholders are subject to three year escrow agreements on their holdings.
“We are incredibly grateful to the Nisga’a Lisms Government for tirelessly advancing Nations Royalty to this important juncture. Nisga’a have always been leaders. From the legal advocacy for Aboriginal Rights and Title, icons like the legendary Frank Calder, the first indigenous person ever elected to any legislative body in Canada, and the first modern Treaty in British Columbia. Now, they are the founders of the largest majority indigenous-owned public company in Canada,” commented Nations Royalty interim CEO Rob McLeod.
“Royalty companies have been the crown jewel of the mining space over the past two decades; we have the first-mover advantage and look forward to creating significant value for all investors in Nations Royalty.”
Nations Royalty is to begin trading this morning on the TSX Venture under the symbol “NRC”.
FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive is long the equity of Nations Royalty. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
