Highlights
- Sale of Appian’s royalty interest over the world class large scale Caserones copper mine to Nomad Royalty Company Ltd. for US$23 million in cash, as well as the Q1 and a third of the Q2 dividend to be payable to Appian, plus two million share purchase warrants in Nomad
- The transaction represents the first divestment from Appian’s Royalty Portfolio, generating an attractive return for its Limited Partner investors
- Demonstrates Appian’s excellent track record; ability to source leading off-market private investment opportunities in Latin America and make successful exits
- Caserones remains an attractive, cash generative long-life copper mine, with top-of-the-line infrastructure and equipment providing long-term exposure to green commodities
Appian Capital Advisory LLP (“Appian” or the “Company”), the investment advisor to long-term value focused private equity funds that invest solely in mining and mining related companies, is pleased to announce it has entered into a definitive purchase agreement to sell the Caserones copper royalty (the “Royalty”) to Nomad Royalty Ltd. for total cash consideration of $23 million and two million common share purchase warrants of the buyer. Under the transaction documents, Appian will also be entitled to the Q1 2021 dividend and a third of the Q2 2021 dividend.
The Royalty interest is highly cash generative and represents an effective 0.28% net smelter return royalty over the Caserones mine in Atacama, Chile, owned by Minera Lumina Copper Chile.
The Caserones copper mine is a world class open-pit operation, located in a tier 1 mining jurisdiction with successful operational history and a long mine life with further expansion potential. The asset benefits from a significant historical investment of US$4.2bn and well established infrastructure, and is expected to produce significant volumes of copper and molybdenum over the long term.
The transaction is subject to customary closing conditions and regulatory approvals in Chile.
Michael W. Scherb, Founder and CEO of Appian, commented:
“We are delighted to announce this transaction with Nomad who have sector leading growth potential and a high quality asset base.
This investment is a further example of Appian’s ability source high-quality, off-market investment opportunities and effectively bring them to market to generate attractive returns for our investors.
This comes at an incredibly exciting time for Appian, following the close or our second Fund, and we are well positioned to take advantage of opportunities in green and electrification linked commodities, along with the growing investor demand for real assets.”
Guillermo Kaelin, Managing Partner and Head of Latin America, commented:
“Appian remains highly active in Latin America which is a core target jurisdiction for us. We are able to provide liquidity to private individuals who hold royalty interests over high quality assets and also provide tailored financing solutions to owners of metals and mining assets.”
You can download a PDF version of the Appian press release here.
For further information:
Finsbury +44 (0)20 7251 3801
Charles O’Brien, Ruban Yogarajah, Richard Crowley
Appian Capital Advisory +44 (0)20 7004 0951
[email protected]
Michael W. Scherb
About Appian Capital Advisory LLP
Appian Capital Advisory LLP is the investment advisor to long-term value focused private equity funds that invest solely in mining and mining related companies.
Appian is a leading investment advisor in the metals and mining industry, with global experience across South America, North America, Australia and Africa and a successful track record of supporting companies to achieve their development targets, with a global operating portfolio overseeing nearly 5,000 employees.
Appian has a global team of 46 experienced professionals with offices in London, Toronto, Lima, Belo Horizonte and Sydney.
For more information please visit www.appiancapitaladvisory.com, or find us on LinkedIn or Instagram.