Vedanta pays $246 million to regain Zambia copper mines
The metals and energy major plans to ramp up copper production from the mines to 300,000 tons a year and cobalt output to 6,000 tons.
Nova Royalty (TSXV: NOVR) has completed its previously announced acquisition of a portfolio of nine royalties from Transition Metals (TSXV: XTM), headed by a 1% net smelter return (NSR) royalty on the Janice Lake copper-silver project in Saskatchewan currently being advanced by Rio Tinto Exploration Canada and Forum Energy Metals (TSXV: FMC).
The portfolio also comprises a 1% NSR royalty on the Wollaston project, located 40 km along strike from Janice Lake, a 1.25% NSR on the Dundonald nickel project, and six other royalties on prospective exploration properties in some of Canada’s most mineralized basins. These include NSR royalties on the Bancroft, Maude Lake, Saturday Night, Homathko, Elephant Head and West Matachewan projects.
The newly acquired royalty assets will add to Nova’s existing royalty interests in the Nueva Unión copper-gold project in Chile — a 50/50 joint venture between Teck and Newmont — and the Dumont nickel-cobalt project in the Abitibi mining camp of Québec.
Total consideration paid to Transition Metals consisted of C$1.072 million in cash and 525,000 common shares of Nova, as well as additional contingent payments payable upon achievement of certain milestones in respect of the Janice Lake project.
Janice Lake is a sedimentary copper-silver project encompassing a 52 km long district of the Wollaston Copperbelt, totaling over 380 sqkm with over 20 known copper occurrences on the property. Copper-silver mineralization currently extends for approximately 8 km in outcrop and in drill holes along strike of the Janice Lake basin.
Rio Tinto optioned the project in May 2019 and can earn an 80% interest Janice Lake by spending C$30 million in addition to making separate option payments to Forum Energy and Transition Metals.
Last week, Rio announced the completion of summer exploration on Janice Lake, with a total of 25 holes for 818 metres on seven targets completed, all located on historical copper showings, structural and geophysical targets identified on the property.
Shares of Nova Royalty surged 6.5% by 1 p.m. EDT Tuesday following the royalty acquisitions. The company began trading on the TSXV on October 1.
