Nova Royalty acquires copper NSR on Newmont’s Saddle North in BC

Nova Royalty (TSXV: NOVR; US-OTC: NOVRF) is adding a high-quality copper project to its portfolio with the acquisition of a 0.25% net smelter return (NSR) on the Tatogga property, which contains the Saddle North deposit owned by Newmont (TSX: NGT; NYSE: NEM).

Newmont acquired Saddle North, a gold-rich copper porphyry deposit located in northwest British Columbia, via its takeover of GT Gold in 2021.

The project hosts indicated resources of 298 million tonnes grading 0.28% copper, 0.36 gram gold per tonne and 0.8 gram silver per tonne for 1.8 billion lb. copper, 3.5 million oz. gold and 7.6 million oz.  silver. Inferred resources total 543 million tonnes at 0.25% copper, 0.31 gram gold and 0.7 gram silver, for a further 3 billion lb. copper, 5.5 million gold oz. and 11.6 million oz. silver.

Nova’s royalty covers nearly 370 sq. km of B.C.’s Golden Triangle, considered to be one of Canada’s premier mining camps. It is part of a broader, existing 2% NSR royalty on Tatogga. The seller — an arm’s length party — is the sole beneficial owner of half of the 2% NSR.

Nova will pay the seller $1 million in cash and $2.75 million in shares. The company will also gain a right of first refusal with respect to an additional 0.25% NSR royalty owned by the seller covering the same area as the royalty.

“The acquisition of the Tatogga royalty further demonstrates Nova’s ability to execute on our strategy of sourcing and securing royalties on high-quality copper projects from third party holders. The Saddle North deposit has a significant copper-gold-silver resource and is situated in B.C.’s Golden Triangle, one of Canada’s premier mining camps,” Hashim Ahmed, Nova’s interim CEO, said in a release.

According to the company, the planned merger between Newmont and Australia’s Newcrest Mines (TSX: NCM; ASX: NCM), which owns 70% of the nearby Red Chris copper-gold mine, has the potential to unlock synergies for the development of Saddle North and the larger Tatogga property.

Shares of Nova Royalty gained 2.5% by noon on Thursday. The copper and nickel focused royalty company has a market capitalization of $146 million.