TSXV: NOVR
OTCQB: NOVRF
- Quarterly revenue: Nova recognized revenue of
$591,851 from its royalty interests, primarily related to Aranzazu. This was the second highest quarterly revenue on record for Nova. Increased Copper World royalty: InApril 2023 , Nova increased its exposure to Hudbay Minerals'Copper World project, a Tier-1 development asset located inArizona . Nova now owns a 0.165% NSR royalty onCopper World and retains a right of first refusal in respect to an additional 0.510%.- Progress of portfolio assets: Several key development assets on which Nova holds royalties made meaningful progress toward construction decisions. First Quantum, Lundin and Hudbay continued to progress engineering and permitting at Taca Taca, Josemaria, and
Copper World , respectively. InFebruary 2023 , Los Andes Copper announced the results of a pre-feasibility study ("PFS") and maiden mineral reserve for the Vizcachitas project, showing an initial mine life of 26 years, average annual production of 183,017 tonnes of copper for the first 8 years, an IRR of 24%, and a post-tax NPV of$2.8 billion . - Senior management changes: On
May 16, 2023 , the Company announced the departure ofAlex Tsukernik as CEO and President, and appointedHashim Ahmed as Interim CEO andBill Tsang as Interim CFO. - Director changes: On
May 17, 2023 , the Company announced thatDouglas Silver ,Johanna Fipke andAndrew Greville resigned from the Board of Directors. - Retained PI Financial as financial advisor: On
May 17, 2023 , the Company announced that it had engaged PI Financial as its financial advisor to commence a process to explore, review and evaluate all options that may be available to the Company to maximize shareholder value.
Aranzazu
Aura Minerals Inc. ("Aura") disclosed that Aranzazu produced 12.3 million copper equivalent ("CuEq") pounds ("lbs") during Q1 2023. CuEq production was 3% lower than in Q1 2022 and 10% lower than in Q4 2022 as a result of mining slightly lower grade gold and copper areas, in accordance with Aranzazu mine planning(1).
Nova recognized
Aura reported that it expects to produce between 101,000 – 116,000 gold equivalent ounces ("GEO") at Aranzazu during 2023. Aranzazu produced 111,531 GEO during the year ended
Aura last reported proven and probable mineral reserves at Aranzazu as of
First Quantum Minerals Ltd. ("First Quantum") continued to conduct pre-development and feasibility activities at Taca Taca during Q1 2023. During the second quarter of 2021, First Quantum submitted two environmental permits regarding key infrastructure at Taca Taca. The primary Environmental and Social Impact Assessment ("ESIA") for
First Quantum last reported proven and probable mineral reserves at Taca Taca of 1,758.5 million tonnes at 0.44% Copper, 0.09 g/t gold, and 0.012% molybdenum(4).
Hudbay Minerals Inc. ("Hudbay") previously reported that on
Hudbay reported that, in
Hudbay also reported that, in
Hudbay reported that it is continuing to advance clearing and grading work to prepare for the development of the
Upon receipt of state permits, Hudbay reported that it expects to conduct a bulk sampling program to continue to de-risk the
In
Hudbay last reported measured and indicated resources at the
Josemaria
As of
Lundin Mining reported that infill drilling and assaying completed at Josemaria in 2021 and 2022 will be incorporated into future Mineral Resource and Mineral Reserve estimates published by Lundin Mining(8).
Additionally, Lundin Mining reported that it intends to spend approximately
Lundin Mining last reported proven and probable reserves at Josemaria of 1,012 million tonnes at 0.30% copper, 0.22 g/t gold, and 0.94 g/t silver(10).
Vizcachitas
On
LAC last reported proven and probable mineral reserves for Vizcachitas of 1,220 million tonnes at 0.36% copper, 136 ppm molybdenum and 1.1 g/t silver. LAC also reported measured & indicated resources at Vizcachitas of 1,541 million tonnes at 0.38% copper, 155 ppm molybdenum, and 1.1 g/t silver(11).
ON BEHALF OF NOVA ROYALTY CORP.,
(signed) "Hashim Ahmed"
Interim Chief Executive Officer
Neither the
Notes:
(1) | Refer to Aura Minerals' Management's Discussion and Analysis for the three months ended |
(2) | Refer to Aura Minerals' Annual Information Form for the year ended |
(3) | Refer to First Quantum Minerals Management's Discussion and Analysis for the first quarter ended |
(4) | Refer to First Quantum Minerals' NI 43-101 Technical Report Titled " |
(5) | Refer to Hudbay's Management's Discussion and Analysis for the three and nine months ended |
(6) | Refer to Hudbay's Management's Discussion and Analysis for the three months ended |
(7) | Refer to Hudbay's NI 43-101 Technical Report entitled " |
(8) | Refer to Lundin Mining's Management's Discussion and Analysis for the quarter ended |
(9) | Refer to Lundin Mining's press release titled "Lundin Mining Announces 2022 Production Results & Provides 2023 Guidance" on |
(10) | Refer to Lundin Mining's NI 43-101 Technical Report titled "NI 43-101 Technical Report, Feasibility Study for the |
(11) | Refer to Los Andes Copper's NI 43-101 Technical Report Titled "Vizcachitas Project Pre-Feasibility Study, |
Technical and Third-Party Information
Nova has limited, if any, access to the properties on which Nova holds a royalty, stream or other interest. The Company may from time to time receive operating information from the owners and operators of the mining properties, which it is not permitted to disclose to the public. Nova is dependent on (i) the operators of the mining properties and their qualified persons to provide information to Nova, or (ii) publicly available information to prepare disclosure pertaining to properties and operations on the properties on which Nova holds royalty or other interests, and generally has limited or no ability to independently verify such information. Although Nova does not have any knowledge that such information may not be accurate, there can be no assurance that such third-party information is complete or accurate. Some reported public information in respect of a mining property may relate to a larger property area than the area covered by Nova's royalty or other interest. Nova's royalty or other interests may cover less than 100% of a specific mining property and sometimes may only apply to a portion of the publicly reported mineral reserves, mineral resources and or production from a mining property.
Unless otherwise indicated, the technical and scientific disclosure contained or referenced in this press release, including any references to mineral resources or mineral reserves, was prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Canadian standards for public disclosure of scientific and technical information concerning mineral projects differ significantly from the requirements of the U.S. Securities and Exchange Commission under subpart 1300 of Regulation S-K (the "SEC Modernization Rules"). Nova is not currently subject to the SEC Modernization Rules. Accordingly, the scientific and technical information contained or referenced in this press release may not be comparable to similar information made public by
"Inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Historical results or feasibility models presented herein are not guarantees or expectations of future performance.
Technical information contained in this press release originates in the public disclosure set out above and has been reviewed and approved by
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information include, but are not limited to, statements with respect to future events or future performance of Nova; the existence of future business opportunities; the expected production at Aranzazu in 2023; the planned drill program at Aranzazu for 2023; ESIA approval for Taca Taca and the expected timing thereof; approval of an additional environmental permit for Taca Taca and the timing thereof; completion of water supply studies and pump tests by First Quantum to support the application for a concession for borefield water supply and expected timing thereof; the filing of water permit applications by First Quantum and the timing thereof; obtaining of construction permits for the power development line at Taca Taca; obtaining state and local permits for
Such forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Nova to control or predict, that may cause Nova's actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to, risks associated with the impact of general business and economic conditions; the absence of control over mining operations from which Nova will purchase precious metals or from which it will receive stream or royalty payments and risks related to those mining operations, including risks related to international operations, government and environmental regulation, delays in mine development, construction and operations, actual results of mining and current exploration activities, conclusions of economic evaluations and changes in project parameters as plans are refined; problems related to the ability to market precious metals or other metals; industry conditions, including commodity price fluctuations, interest and exchange rate fluctuations; interpretation by government entities of tax laws or the implementation of new tax laws; regulatory, political or economic developments in any of the countries where properties in which Nova holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Nova holds a royalty or stream or other interest, including changes in the ownership and control of such operators; risks related to global pandemics, including the novel coronavirus (COVID-19) global health pandemic, and the spread of other viruses or pathogens; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Nova; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Nova holds a royalty, stream or other interest; the volatility of the stock market; competition; future sales or issuances of debt or equity securities; use of proceeds; dividend policy and future payment of dividends; liquidity; market for securities; enforcement of civil judgments; and the risk factors set out under the heading "Risk Factors" in the Company's annual information form dated
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