Nomad Royalty unveils amendments to its Mercedes and South Arturo streams following Premier Gold Mines acquisition

Nomad Royalty Company Ltd (TSE:NSR) (OTCQX:NSRXF) (FRA:IRLB) has unveiled changes to its Mercedes and South Arturo precious metals streams in the Americas following the acquisition of Premier Gold Mines by Equinox Gold Corp (NYSEAMERICAN:EQX) (TSE:EQX) (OTCMKTS:EQXWF) (FRA:1LRC) to create a new US-focused group called i-80 Gold Corp.  

The company has agreed to an amended and restated purchase and sale agreement over the Mercedes mine in Mexico and a new purchase and sale deal with i-80 Gold on the South Arturo mine in Nevada, US. 

READ: Nomad Royalty reports revenue and income rise last year as it eyes strong cash flow generation for 2021

In Mexico, as well as silver deliveries, Nomad’s subsidiary OMF will now receive fixed quarterly gold deliveries of 1,000 ounces of refined gold, plus a further 6.5% of such adjusted amount payable in refined gold. Fixed quarterly gold deliveries shall terminate once 9,000 ounces of gold have been delivered. 

The agreement will continue to provide for a 100% silver stream on the Mercedes mine until 3.75 million ounces (2.73 million ounces as of March 31, 2021) of silver have been delivered to OMF.

Meanwhile, at South Arturo in Nevada, OMF and i-80 Gold have struck a new deal that provides for deliveries to OMF of 100% of the ounces of refined silver in attributable production from the existing mineralized areas at South Arturo and 50% of ounces of refined silver in attributable production from the exploration stream area.

In addition, certain amendments will be made to the existing RDM royalty agreement over the Riacho dos Machados gold mine in Minas Gerais, Brazil, noted the company, which is a royalty held by Nomad with Mineração Riacho dos Machados, a wholly-owned subsidiary of Equinox.

Nomad is a gold and silver royalty company that buys rights to a percentage of the gold or silver produced from a mine, for the life of the mine.

Nomad has 14 royalty and stream assets, six of which are currently producing mines.

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Story by ProactiveInvestors