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November 1, 2021

Nomad Royalty signs $95m gold stream on Canadian gold project

The mine is estimated to hold proven and probable mineral reserves of 5.54Mt in grading 1.27g/t gold.

Nomad Royalty (NSR ) has signed a $95m agreement to acquire a 40% stake in the Greenstone Gold Mines (GGM ) from a subsidiary of Orion Mine Finance.

GGM owns and operates the Greenstone Gold Project in Ontario, Canada.

According to the gold stream deal, Nomad will pay $95m in two upfront cash instalments to Orion .

Nomad will deliver 5.938% of gold production from the Greenstone Gold Project, attributed to Orion ‘s 40% interest. This will be effective until the delivery of 120,333oz of gold, and 3.958% thereafter.

Furthermore, Nomad will pay an ongoing payment to the seller. This will be equal to 20% of the spot gold price for each delivery of refined gold ounce.

Nomad also agreed to fund mine-level environmental, social and governance (ESG) programmes under the gold stream.

In a press statement, the firm said: “For further clarity, the Gold Stream does not encumber Equinox Gold’s 60% interest in GGM or the Greenstone Project.”

Nomad CEO Vincent Metcalfe said: “The addition of the Greenstone Gold Stream strengthens our portfolio and adds near-term production from a fully permitted project located in Ontario, a premier mining jurisdiction.

“This transaction is consistent with Nomad’s strategy of building a cash flow focused precious metals royalty and stream portfolio.”

The gold and silver royalty company said that the gold stream on Orion ‘s 40% stake will be applicable for all mining leases, mining claims, and other mining rights involving the Greenstone Project.

GGM is a 60/40 joint venture between Equinox Gold and Orion Mine Finance.

Construction recently commenced on the $1.23bn Greenstone gold mine project, which is expected to produce over 400,000oz of gold a year for the first five years.

According to estimates, the mine holds proven and probable mineral reserves of 5.54Moz, in grading 1.27g/t gold.

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