Nations Royalty Corp. (Ticker: NRC.v) is pioneering an innovative approach to indigenous royalties by integrating public companies and First Nations royalties into the public market.
NRC's portfolio includes five royalty assets on four projects, including the massive KSM copper-gold project, which could generate significant revenue in the future.
The Nisga’a Nation, the indigenous group that contributed the assets to help start the company and is the founding shareholder, holds 76% of NRC shares.
Other significant shareholders include NRC management and the Fiore Group, a private equity firm led by Billionaire investor Frank Giustra.
In a recent video, Derrick Pattenden, the Chief Investment Officer of Nations Royalty, shared insights into this unique model.
He explained how the company packages indigenous royalties into a public equity framework, bringing forward the present value of long-term royalties, which can be used to accelerate economic development for indigenous communities.
The company's strategy allows these communities to benefit not only from future royalty payments but also from equity in a diversified portfolio of assets, which reduces risk.
Key details of Nations Royalty's model include:
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Packaging multiple royalties together to attract higher valuations from investors.
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Providing indigenous groups with equity, allowing them to participate in the growth of the company.
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Offering expertise in negotiating royalty structures that best serve the interests of indigenous partners.
Pattenden, who has a background in mining investment banking, emphasized the importance of carefully evaluating assets and structuring royalties to maximize their value.
Nations Royalty offers both traditional net smelter return (NSR) royalties and new structures like mineral tax royalties (MTR), providing flexibility in partnership negotiations with First Nations.
With its unique model and growing partnerships, Nations Royalty aims to expand its portfolio while offering First Nations a meaningful stake in the mining industry's future.
Full interview here:
Posted on behalf of Nations Royalty Corp.