Nova Royalty arranges $10-million public offering

NOVA ROYALTY ANNOUNCES PUBLIC OFFERING OF COMMON SHARES

Nova Royalty Corp. has arranged a best-effort public offering of common shares of the company for aggregate gross proceeds of approximately $10-million at a price of $3.30 per common share.

The offering will be led by PI Financial Corp. as lead agent and PI Financial Corp. and Cantor Fitzgerald Canada Corp. will be co-bookrunners, on behalf of a syndicate of agents.

The offering is expected to be conducted in each of the provinces of Canada (other than Quebec) by way of prospectus supplement to the company’s short form base shelf prospectus dated Oct. 30, 2020. Additionally, the offering is expected to be conducted by private placement in the United States pursuant to certain exemptions from the Securities Act of 1933, as amended, as well as other jurisdictions where the offering can lawfully be made.

In connection with the offering, the company intends to enter into an agency agreement with the agents. The agency agreement will provide that the company will grant the agents an option to purchase up to a number of additional common shares equal to 15 per cent of the common shares sold pursuant to the offering, exercisable in whole or in part at any time on or prior to the 30th day following closing of the offering. Until such time as the agency agreement is entered into, the agents are under no obligation to sell any of the common shares.

The company intends to use the net proceeds from the offering for the acquisition of the net smelter return on the copper, gold and silver production from the Aranzazu project, which is subject to an underlying 1.0-per-cent net smelter return royalty. The Aranzazu project is owned by Aura Minerals Inc. and comprises 22 mining concessions located at the municipalities of Concepcion del Oro and Mazapil in the state of Zacatecas, Mexico. In addition, the remaining net proceeds of the offering will be used for working capital and other royalty acquisitions.

The offering is expected to close on or about Aug. 25, 2021, or such other date as may be mutually agreed to by the company and the agents, subject to satisfaction of customary closing conditions, including, but not limited to, the receipt of all necessary approvals, including the conditional approval of the TSX Venture Exchange.

Copies of the base shelf prospectus and the prospectus supplement to be filed in connection with the offering can be found on SEDAR.

About Nova Royalty Corp.

Nova is a royalty company focused on providing investors with exposure to the key building blocks of clean energy — copper and nickel. The company is headquartered in Vancouver, B.C., and is listed on the TSX-V under the trading symbol NOVR.

We seek Safe Harbor.

Source

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