Nova Royalty / HudbayVANCOUVER, BC, Jan. 10, 2022 /CNW/ - Nova Royalty Corp. ("Nova" or the "Company") (TSXV: NOVR) (OTCQB: NOVRF) is pleased to announce that it has entered into a royalty purchase agreement (the "Agreement") with arm's length private parties (the "Sellers") pursuant to which Nova will acquire an existing 0.135% net smelter return ("NSR") royalty, (the "Royalty") on the Copper World and Rosemont copper projects in Arizona, USA (the "Transaction"), owned by Hudbay Minerals Inc. ("Hudbay") (TSX:HBM) (NYSE: HBM).
Nova will also be granted a Right of First Refusal (the "ROFR") in respect to an additional 0.540% NSR owned by the Sellers covering the same area as the Royalty. The purchase price for the Royalty includes $1.0 million in cash and $0.5 million in stock payable at closing, $1.0 million in cash payable 12 months after closing, and $3.0 million in cash following the ramp-up of production at either Copper World or Rosemont.