"It's Going to Change Everything" - Nations Royalty (NRC.v) announced that they will have the world's first indigenous mining CEO
NRC's stated goal is to "grow into a top global royalty company, specializing in Indigenous-owned royalties and revenue streams in precious metals and critical minerals, oil and gas and renewable energy".
After only a week of trading, NRC solidified its position as the largest majority Indigenous-owned public company on the planet.
With a mcap of about CAD$130M, the Nisga'a own 76.8% of the company with a controlling presence on the board thus that it cannot be expanded without Nisga'a approval.
Significantly, this is a watershed moment for both the Canadian mining industry and Indigenous communities.
NRC's founders include mining financier and philanthropist Frank Giustra and the company's objective is to build a powerful investment vehicle creating wealth for Indigenous groups and other NRC shareholders.
Key Company Highlights: - 5 Nisga'a Benefits Agreements Royalties with a NAV of US$214M
- Bringing value forward from royalties onto Indigenous Groups Balance Sheets
- Over 150 Benefit Agreements across Canada in NRC Database
- Many Indigenous Groups to be long-term shareholders
- Acquisition of additional royalties for predominantly share consideration
- Potential dividends to shareholders
- Platform for Indigenous Groups to diversify their royalties
- Develop and promote senior Indigenous mining talent
- Appeals to ESG-focused investors
Mining Royalties For those unknown to mining royalties, a royalty companies give cash to miners in exchange for a share of the mine's future production, thus side-stepping a lot of the downside risk of exploration and mining because they don't own drill-rigs or transport trucks.
Mining companies often grant Indigenous groups royalties in exchange for land usage rights, thus each party gives up something of value and gaining something in return.
"The key difference is that new projects now hinge on the rights of Indigenous Peoples to give or withhold their consent for any action that would affect their lands, territories, or rights.”
With over 150 indigenous royalty agreements across Canada in NRC's database, the legal and jurisdictional changes from the United Nations Declaration on the Rights of Indigenous Peoples catalyze the growth opportunity for Nations Royalty as there has been a 55% increase in the royalty payments to Indigenous groups in the last 5 years.
NRC's Assets NRC boasts a diversified asset base, all of which are located in BC's Golden Triangle and collectively have a net value of ~US$214M.
NRC's foundation begins with five annual benefit payments entitlements in place regarding:
- Brucejack Gold Mine: Underground copper-silver mine & currently producing asset operated by Pretium Resource
- Premier Gold Project: Commercial production slated to begin in third quarter with first gold pour having occurred in April, operated by Ascot Resources
- Red Mountain Gold Deposit: Near Premier Mine & operated by Ascot Resources
- KSM Copper-Gold-Silver-Molybdenum Deposit: In development by SeaBridge Gold, exposes NRC to copper, gold silver and molybdenum
- Kitsault Molybdenum Deposit: Fully permitted brownfield site focused on molybdenum being advanced by New Moly
In merging royalties and incomes from various resource projects to attract external investors, promoting economic growth and reconciliation NRC is aiming to capitalize on economic growth, diversification and the empowerment of Indigenous communities in the public and capital markets.
Full News Release:
https://www.theglobeandmail.com/investing/markets/markets-news/TheNewswire.com/27258850/nations-royalty-will-have-the-worlds-first-indigenous-mining-ceo-its-going-to-change-everything/ Posted on Behalf of Nations Royalty Corp.