-- Global Stocks News – Disseminated on behalf of Nations Royalty. On July 30, 2024 Nations Royalty (TSXV: NRC) announced that the government of BC has granted ‘Substantially Started’ designation for Seabridge Gold’s KSM Project, located in the Golden Triangle of northwest British Columbia.
NRC owns a significant royalty on the KSM project.
NRC’s corporate goal is to grow into a top global royalty company, specializing in Indigenous-owned royalties and revenue streams in precious metals and critical minerals, oil and gas and renewable energy.
The Nisga’a own 76.8% of NRC and have a controlling presence on the board.
“KSM is the world’s largest undeveloped gold project as measured by reserves and resources,” Nations Royalty CEO Rob McLeod told Guy Bennett, the CEO of Global Stocks News (GSN). “It is a Tier One project, well balanced between base and precious metals.
“The project has the potential to be a cornerstone cash flowing asset for Nations Royalty,” added McLeod.”
“We look forward to all groups continuing to work together to advance the KSM Project and fruitful outcomes to Seabridge’s joint venture discussions,” stated Kody Penner, VP of Corporate Development for Nations Royalty.
“Our Payment Entitlement, on the large, long-life copper-gold-silver-molybdenum Deposit, is a core piece of the foundation for the future success of Nations Royalty,” added Penner.
"This is a significant regulatory milestone for the KSM Project, positioning it to become a multigenerational economic anchor for northwestern BC,” stated Seabridge Chairman and CEO Rudi Fronk.
“KSM's large copper reserve can contribute to meeting North America's technology, defense, and security objectives,” continued Fronk, “while the project can also promote the economic wellbeing of our Indigenous partners.”
“We greatly appreciate the support that we received from the Nisga'a and Tahltan Nations, the Gitxsan Hereditary Chiefs Office,” added Fronk.
The KSM deposit hosts 47.3 million ounces of gold and 7.3 billion pounds of Copper in Proven and Probable Reserves.
The primary obstacle to putting it into production is the capex - which could be as high as $10 billion with systemic inflation. Seabridge is not a small company. It has a market cap of $2 billion. The company has raised hundreds of millions of dollars to develop KSM, but they will need an even bigger partner to bankroll the mine-start.
According to the messaging coming from Seabridge, the “Substantially Started Designation” is bringing potential JV partners to the negotiating table.
“Seabridge Gold (TSX: SEA; NYSE: SAKSM) has long been seen as a juicy takeover candidate for its huge KSM gold-copper deposit, but its remote, mountainous location in British Columbia, $6.4 billion price tag, and uncertain permitting path have been obstacles to clinching a deal,” reports Henry Lazenby of the Northern Miner in a well-researched article published on August 1, 2024.
“Now that one of those factors has changed—permitting—chairman and CEO Rudi Fronk says the company could be in a position to sign on a well-heeled joint venture partner within months to help it develop the mammoth project,” added Lazenby.
“With six major gold and copper companies currently at the table, we are confident that we will secure a partnership that aligns with our vision and financial strategy,” he [Fronk] told The Northern Miner during a site visit to KSM in late July. “The nice thing right now is for the first time ever, we have competitive tension going on in our process.”
“Once the permit designation has been completed, we could expect a deal within four to six months, perhaps even sooner,” confirmed Fronk.
The Substantially Started Designation allows for the KSM Project’s Provincial Environmental Assessment Certificate to be valid in perpetuity over the life of the KSM Project and is no longer subject to expiry.
Nations Royalty holds the right to receive an annual benefit payment entitlement on the KSM Project that is calculated by reference to the amount of tax payable by the project operator under the Mineral Tax Act (British Columbia) for the life of the KSM Project (the “KSM Payment Entitlement”).
The KSM Payment Entitlement was negotiated by the Nisga’a Nation and recently contributed to Nations Royalty as part of a royalty portfolio.
“Nations Royalty’s vision presents a unique opportunity for the Nisga’a Nation, other First Nations and Indigenous groups, and investors to access a portfolio encompassing precious and critical metal mines, oil and gas ventures, and renewable energy projects,” stated Eva Clayton President of the Nisga’a Lisims Government.
“With guidance from renowned mining entrepreneur, Frank Giustra, our ambition is to grow Nations Royalty into one of the top global royalty companies,” added Clayton.
“Nisga'a have always been leaders,” stated Interim CEO Rob McLeod, “Now, they are the founders of the largest majority Indigenous-owned public company in Canada.”
“Seabridge Gold has just cleared a significant permitting hurdle,” concluded McLeod. “A producing KSM mine would be a major benefit to all Nations Royalty shareholders."
Disclaimer: Nations Royalty paid GSN CND $1,500 for the research, creation and dissemination of this content.
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Organization: Global Stocks News
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Release ID: 89138144
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