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(Kitco News) - Nova Royalty (TSXV: NOVR), a copper and nickel-focused royalty company, announced today that it has entered into an agreement with an arm’s length private party pursuant to which Nova will acquire an existing 0.25% NSR royalty on the Tatogga property in British Columbia, Canada.
According to a press release, the Tatogga property contains the Saddle North copper-gold-silver deposit owned by Newmont Corporation (NYSE: NEM) (TSX: NGT).
Nova said it will also be granted a right of first refusal with respect to an additional 0.25% NSR royalty owned by the seller covering the same area as the royalty.
The aggregate purchase price for the transaction is $3,750,000.
Saddle North is a gold-rich copper porphyry deposit located in the Golden Triangle in northwest British Columbia, Canada.
Before being acquired by Newmont in 2021, Saddle North was owned by GT Gold, which published a maiden resource estimate for Saddle North in 2020, which included 1.81 billion pounds of copper, 3.47 million ounces of gold, and 7.58 million ounces of silver contained in indicated resources, and 2.98 billion pounds of copper, 5.46 million ounces of gold, and 11.64 million ounces of silver contained in inferred resources.
Importantly, the company said that the potential merger between Newmont and Newcrest, which owns 70% of the nearby Red Chris copper-gold mine, has the potential to unlock synergies for the development of Saddle North and the larger Tatogga property.
Interim CEO Hashim Ahmed commented, “The acquisition of the Tatogga royalty further demonstrates Nova’s ability to execute on our strategy of sourcing and securing royalties on high-quality copper projects from third party holders. The Saddle North deposit has a significant copper-gold-silver resource and is situated in B.C.’s Golden Triangle, one of Canada’s premier mining camps.
“Additionally, Tatogga is owned by Newmont, an industry-leading mining company with a proven track record of success. We view this transaction as an accretive acquisition that improves both the quality and value of Nova’s portfolio.”
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