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August 20, 2021

Nomad increases royalty stake in Caserones copper mine in Chile

Nomad will purchase an additional 0.351% net smelter return royalty on the Caserones mine, located in the Atacama region.

Nomad Royalty has signed an agreement with private vendors to acquire a royalty in the Caserones copper-producing mine in Chile for $27.25m in cash.

Under the agreement, the firm will purchase an additional 0.351% net smelter return royalty on the mine in the Atacama region.

Nomad Royalty will receive the second quarter dividend payment from Compania Minera Caserones (CMC), a Chilean firm that holds the payment rights to 32.5% of a 2.88% NSR royalty on the Caserones mine.

The deal will also see the gold and silver royalty company acquiring shares in CMC, representing a 37.5% ownership interest.

In May 2021, Nomad acquired a 0.28% NSR royalty on the Caserones mine, which is said to have a large land package and is located close to large copper discoveries.

Upon completion of the latest deal, Nomad will have 0.63% NSR on the Caserones mine, with a total investment of $50.25m.

Moreover, Nomad will become CMC’s registered shareholder and own 67.5% of CMC’s shares.

The company expects the transaction to increase its exposure to a large scale mine while strengthening its free cash flow profile.

In a press statement, Nomad said: “Subject to certain conditions, including the registration in Nomad’s name of the shares of CMC being acquired by Nomad in the shareholders’ registry of the Custodian of Mines of Santiago, Chile, the closing of the share acquisition is expected in August or early September 2021.”

The transaction forms part of the firm’s efforts to grow and diversify its low-cost production profile through the acquisition of producing and near-term producing gold and silver streams and royalties.

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