Evolve Royalties in $70M deal for Voyageur Explorers

Private firm Evolve Strategic Element Royalties is poised to acquire the Prairies- and copper-zinc-gold-focused Voyageur Mineral Explorers (CSE: VOY) in a reverse takeover valued at $70.3 million.  

Voyageur is to acquire all of Evolve’s shares at 80¢ apiece and will continue its exploration work as well as take on Evolve’s royalties activities, according to an agreement between the companies, they reported Wednesday. Voyageur holds several exploration projects in northwest Manitoba and southeast Saskatchewan, such as the Gold Rock and Hanson Lake sites.

“This strategic business combination marks a transformative event for Voyageur, creating a stronger, more diversified emerging leader in copper mining royalties,” Voyageur President and CEO Fraser Laschinger said in a release. “Through this union, Evolve is poised to drive meaningful growth and deliver enhanced value to all shareholders.”

Big name royalties

Evolve has over the last year built up a copper-focused royalty portfolio based on Teck Resources’ (TSX: TECK.A, TECK.B; NYSE: TECK) Highland Valley Copper mine and Hudbay Minerals’ (TSX, NYSE: HBM) Copper Mountain mine, Evolve CEO Joseph de la Plante, said in the statement. The deal with Voyageur will also add exposure to Foran Mining’s (TSX: FOM; OTCQ-X: FMCXF) McIlvenna Bay project in Saskatchewan. 

“With immediate cash flow, a clear path to meaningful growth, and the benefits of a public listing, Evolve is well positioned to accelerate its acquisition strategy and deliver long-term value for shareholders,” De La Plante said.

Once the deal closes, Voyageur’s name is to change to Evolve Royalties. Voyageur shares have been paused for trading on the CSE and will resume trading after the takeover closes. Before trading was halted, Voyageur shares traded for 84¢ each, valuing the company at $27.17 million. The stock traded in a 12-month range of 44¢ to $1.  

Evolve holds a 0.51% net profit interest in the Highland Valley mine and a 5% net smelter returns (NSR) royalty on copper and 2.5% NSR royalty on all other metals produced on claims at Copper Mountain.

In addition to its British Columbia interests, Evolve also holds a 2% net smelter return royalty on Chinese miner Tibet Summit Resources’ Sal de Los Angeles lithium Brine project in Argentina.