Deep Dive on NRC A First Mover In The Indigenous Royalty Space - Deep Dive on Nations Royalty (NRC.v): https://thedeepdive.ca/nations-royalty-a-first-mover-in-the-indigenous-royalty-space/
Benefit agreement royalties present a new investment opportunity that bridges the gap in resource ownership and benefit distribution between resource companies and Indigenous communities. These royalties empower First Nations to gain financial benefits from their lands, enhancing economic sovereignty and equitable wealth distribution.
Nations Royalty (NRC.v), founded by the Nisga’a Nation of British Columbia and mining legend Frank Giustra, is the first company to capitalize on this opportunity and aims to revolutionize the royalty space by tapping into Indigenous-owned royalties, enabling First Nations to unlock significant net asset value (NAV) multiples and diversify their royalty holdings.
NRC's portfolio includes several high-quality mining projects in the Golden Triangle, categorized into production, near-production, and development stages:
- Brucejack Mine (Newmont Corporation): Operational, producing an average of 310,000 oz. of gold annually, with reserves of 11.5 million tonnes grading 8.44 g/t gold and 34.71 g/t silver. Operates under a Mineral Tax Royalty (MTR) agreement.
- Premier and Red Mountain Projects (Ascot Resources Ltd.): Near production, expected to produce 137,000 oz. of gold equivalent annually. Premier holds reserves of 3.63 million tonnes at 5.45 g/t gold and 19.11 g/t silver, and Red Mountain has 2.54 million tonnes at 6.52 g/t gold and 20.60 g/t silver, both under MTR agreements.
- KSM Project (Seabridge Gold Inc.): One of the world's largest undeveloped gold-copper projects, projected to produce 1,452,000 oz. of gold equivalent annually. Reserves include 2,292 million tonnes at 0.64 g/t gold, 0.14% copper, 2.2 g/t silver, and 76 ppm molybdenum, under an MTR agreement.
- Kitsault Project (New Moly LLC): Focuses on molybdenum and silver, expected to produce 24 million pounds of molybdenum and 93 million pounds of copper equivalent annually. Reserves include 231 million tonnes at 0.082% molybdenum and 5.3 ppm silver, under a Net Smelter Return (NSR) royalty agreement.
With its net asset value totaling $214 million, NRC a significant revenue growth, anticipating a tenfold increase from $4 million in 2024 to $52 million by 2032, driven by Brucejack and KSM as primary contributors. Their model involves acquiring financial benefits from Indigenous communities in exchange for cash and/or equity, promoting sustainable growth and financial stability for both investors and First Nations.
By focusing on Benefit Agreement Royalties, NRC distinguishes itself from traditional royalty companies and ensures a steady pipeline of new royalties, offering investors a unique and socially responsible investment opportunity. This strategy supports the economic independence of Indigenous communities and sets a new standard for socially responsible investment in the mining sector.
For more information, refer to NRC's interview with and feature on Kitco Mining: https://www.kitco.com/news/article/2024-07-23/untapped-opportunity-royalty-space-nations-royalty-builds-golden-triangle
Posted on Behalf of Nations Royalty Corp.