RE:RE:Spincos Coming Soon?
Stockdreamer wrote: interesting post Pamplona. ive never been involved in royalty co's. so essentially nxe turns into a landlord of sort and collects money from a miner before and then during production? would this mean no lump sum buyout? turns into more of a dividend...just curious how this could play out
Retaining a royalty does not preclude a buyout. In fact, royatly retention has become standard in negotiating mergers and acquisitions... see Osisko Gold Royalties retaining royalty on Canadian Malartic; Viriginia Mines retaining a royalty on Eleonore; Aurico Metals retaining a royalty on Young-Davidson and Fosterville.
By retaining a royalty on Arrow, shareholders can participate, on an undilutable basis, in exploration upside as well as optionality to rising commodity prices.