New World Resources secures $11m royalty deal for Antler copper production
Aspiring producer New World Resources (ASX: NWC) has secured an $11 million deal with UK-listed Trident Royalties for royalties on future metal production from the high-grade Antler copper project in the US.
Under the terms of the agreement, Trident will be entitled to a 0.9% net smelter royalty over Antler and currently-defined exploration targets surrounding the deposit.
It will also bank a 0.45% royalty over any additional mineral rights that New World acquires within 5 kilometres of the project.
New World will retain the right to buy back 0.3% of the net smelter royalty (reducing it to 0.60%) for a consideration of $9 million; and 0.15% of the project royalty (reducing it to 0.3%) for an additional $4 million.
New World will be able to exercise its right within three months of obtaining at least 75% of the funding required for Antler’s development and construction.
Trident will have the right to match any royalty or streaming transaction associated with Antler up until 12 months following a declaration of commercial production at the project.
The agreement with Trident does not impose any royalty on New World’s other projects, including the Javelin volcanogenic massive sulphide discovery and the Tererro base metals development.
Proceeds of the deal
Proceeds of the Trident deal will be used to accelerate resource expansion at Antler, where a new phase of exploration drilling commenced last month to test six high-priority, coincident induced polarisation (IP) copper-zinc soil geochemical anomalies.
Funds will also help expedite the development of mining operations at the project, which has a current mineral resource estimate of 11.4 million tonnes at 2.1% copper, 5% zinc, 0.9% lead, 32.9 grams per tonne silver and 0.36g/t gold.
Expanding and expediting
New World managing director Mike Haynes said the Trident deal would enable the company to continue expanding the resource base at Antler while expediting development activities.
“This deal represents a strong endorsement of our expansion and development strategy to become a significant North American copper producer,” he said.
“We are now well financed to continue advancing Antler towards initial production, which is targeted to coincide with a forecast substantial shortfall in global copper supply.”