Nomad Royalty completes Caserones mine royalty acquisition; announces share consolidation

Nomad Royalty Company Ltd (TSE:NSR) (OTCQX:NSRXF) (FRA:IRLB) has completed its acquisition of an indirect interest in a 0.28% net smelter return (NSR) royalty on the producing Caserones mine in the Atacama region of Chile. 

The transaction adds a new revenue stream while providing the company with measured exposure to copper, a key metal powering the world’s transition to a clean energy economy. 

In a statement, Nomad also announced the consolidation of its shares on the basis of one post-consolidation share for every 10 pre-consolidation shares issued and outstanding as of the close of business on May 31. 

READ: Nomad Royalty acquires a cash-flowing royalty on the Caserones copper mine in Chile

The company said the shares are expected to begin trading on a consolidated basis on the Toronto Stock Exchange and the OTCQX market on June 3. The share consolidation was approved by Nomad’s shareholders at the annual and special meetings on May 10.

Nomad said its shareholders will receive one post-consolidation share for every 10 pre-consolidation shares held by them. No fractional shares will be issued as a result of the consolidation. Fractional interests will be rounded down to the nearest whole number of shares.

As a result of the consolidation, the number of issued and outstanding shares will be reduced to 56,638,745 from 566,387,457, subject to the treatment of fractional shares. And each shareholder’s percentage ownership in the company and proportional voting power will remain unchanged, except for minor adjustments resulting from the treatment of fractional shares. 

Nomad said the consolidation will not have any effect on the number of issued and outstanding purchase warrants of the company.

However, the number of shares issuable upon the exercise of each warrant will be reduced and the exercise price increased. Following the share consolidation, the company said the exercise of 10 warrants will be required to purchase one post-consolidation share, and the exercise price will be C$17.10 per share. 

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Story by ProactiveInvestors