Nations Royalty Corp. (Ticker: NRC.v), a newly-formed royalty company, is uniquely positioned with a first mover advantage in the untapped space of Indigenous royalties. Kody Penner, VP of Corporate Development, and Derrick Pattenden, Chief Investment Officer, discussed the company’s vision and assets in a recent interview with Kitco Mining.
Company Formation and Vision
Nations Royalty was established to unlock the significant value embedded in royalties held by Indigenous groups across Canada. Penner highlighted that through historical and legal developments, Indigenous groups have secured royalties on various assets, including mining and energy projects. These royalties, often linked to impact benefit agreements, present substantial untapped value. The company’s vision is to unite First Nations and Indigenous groups, inviting external investors to join as shareholders, thereby promoting economic reconciliation.
Core Assets and Pipeline
Nations Royalty is underpinned by five Nisga’a Benefits Agreement Royalties, collectively valued at $214 million. The portfolio includes:
- Brucejack Gold Mine: This high-grade gold mine is a significant revenue generator.
- KSM Project: This large copper-gold-silver-molybdenum deposit is one of the world’s largest undeveloped gold-copper projects.
- Premier Gold Project: This project commenced gold production in April 2024, with commercial production expected in Q3 2024, overseen by Ascot Resources
- Red Mountain Gold Deposit: Another asset under Ascot Resources, positioned near the Premier Mine, contributing to the company’s diversified portfolio.
- Kitsault Molybdenum Deposit: A large, fully permitted brownfield site
Strategic Advantage and Community Alignment
Penner emphasized Nations Royalty's strategic advantage as a pioneer in the Indigenous royalty company. NRC aims to focus on tier one assets in safe jurisdictions, providing a competitive edge over smaller royalty companies. By consolidating royalties, Nations Royalty aims to multiply their value, offering higher returns and increased asset diversification.
Addressing potential community concerns, Penner noted that Nations Royalty prioritizes alignment with Indigenous groups. By structuring agreements with fair royalty streams, employment opportunities, and procurement packages, the company fosters sustainable relationships that benefit both the Indigenous communities and the mining proponents. This approach ensures that projects advance with strong community support, mitigating risks of setbacks experienced by other mining operations.
Future Developments in the Golden Triangle
The Golden Triangle region, where Nations Royalty’s assets are concentrated, has a rich mining history and substantial infrastructure to support ongoing and future developments. Over the next 12 months, key milestones include Ascot Resources achieving commercial production at the Premier Gold Project and Seabridge Gold advancing the KSM Project. Additionally, improvements in infrastructure, such as the $195 million secured for Highway 37 upgrades, will further enhance the region's development prospects.
In summary, Nations Royalty stands at the forefront of a unique opportunity to transform Indigenous royalties into significant economic drivers, benefiting both investors and Indigenous communities across Canada.
Full interview here:
Posted on behalf of Nations Royalty Corp.