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Indigenous-owned Mining Royalty Firm Targeting Canadian Resource Opportunities
Nov. 19, 2024 09:20AM PST
Nations Royalty is 77 percent owned by the Nisga’a Nation, and is backed by Canadian businessman Frank Giustra.
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Nations Royalty (TSXV:NRC,OTCQB:NRYCF), the first mining royalty company with majority Indigenous ownership, is attracting attention since listing on the TSX Venture Exchange this past June.
With 77 percent ownership by the Nisga’a Nation, the firm is also backed by Canadian businessman Frank Giustra.
As explained on Nations Royalty's website, the idea is to use mining royalties as a means to achieve financial independence for Indigenous communities, while also providing opportunities for investors.
Mining royalties, a common feature of benefit agreements between resource companies and First Nations, are pooled together under Nations Royalty’s portfolio. By collecting these royalties through a publicly traded entity, the company provides a mechanism for Indigenous groups to monetize future revenues and attract broader investment.
This strategy aligns with the Nisga’a Nation’s goal of self-sufficiency and reducing reliance on government funding.
According to Charles Morven, secretary-treasurer for the Nisga’a Nation, Nations Royalty represents a step toward managing the nation's wealth independently and achieving financial capacity within capital markets.
“We want to be accountable to ourselves. Nations Royalty will allow us to manage our own wealth, instead of relying on government funding,” Morven told the Canadian Press in a Monday (November 18) article.
Portfolio focused on BC's Golden Triangle
Nations Royalty currently holds royalties on five major projects in the Golden Triangle of BC, Canada.
These include annual benefit payments tied to high-profile sites like Newmont’s (TSX:NGT,NYSE:NEM) producing Brucejack gold mine and Seabridge Gold’s (TSX:SEA,NYSE:SA) KSM project. Other royalties in the portfolio relate to the Premier gold project, the Red Mountain gold project and the Kitsault molybdenum project.
While the Nisga’a Nation is the majority owner, the company is actively seeking partnerships with other Indigenous groups to expand its shareholder base and royalty portfolio.
Rob McLeod, CEO of Nations Royalty, told the Canadian Press that there are over 400 benefit agreements between First Nations and mining companies across Canada, representing significant untapped potential.
He added that for Indigenous communities with limited access to capital or a single mining project on their land, joining Nations Royalty offers the ability to generate revenue even before mines begin production.
Additionally, shareholders can use their equity to access loans or fund further development projects.
Indigenous governance and recent developments
Nations Royalty’s board of directors and executive team reflect its commitment to Indigenous leadership, with nearly all members coming from Indigenous backgrounds. While McLeod currently serves as CEO, the company plans to transition to Indigenous leadership as it builds capacity within its ranks.
The company's annual general and special meeting was held on November 14, and Nations Royalty reported strong shareholder support for its business agenda at the event. All director nominees were elected, Deloitte was appointed as auditor and an amended stock option plan was approved.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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