HIGHLIGHTS
- US$24 million purchase of NexGold’s 2.9% net smelter royalty in the Goldboro Gold Project
- The project boasts a robust existing resource base with clear upside potential and holds permits that will enable near-term progress to production
- Participation rights on up to 50% of any project financing provides Appian with additional, de-risked exposure
Appian Capital Advisory Limited (“Appian”), the investment advisor to long-term value-focused private capital funds that invest in companies in metals, mining, and adjacent industries, announces it has closed an agreement with NexGold Mining Corp (“NexGold”) to buy a 2.9% net smelter returns royalty (“the Royalty”) in the company’s Goldboro Gold Project (“Goldboro” or “the Project”) in Canada for an upfront cash consideration of US$24 million.
The royalty applies to all minerals produced until cumulative output reaches 1,250,000 ounces of gold or gold equivalent. Thereafter, the Royalty continues to apply to gold production for the life of the mine.
Goldboro is a high-grade, near-construction-ready gold asset located in Nova Scotia, Canada. The project is fully permitted, including both an Environmental Assessment Approval and Industrial Approval. Goldboro is backed by strong First Nations support, including a Benefits Agreement with the Assembly of Nova Scotia Mi’kmaw Chiefs (ANSMC), which outlines economic, cultural, environmental, and employment benefits for Nova Scotia Mi’kmaq communities across all phases of the project.
For three years following the transaction closing date, Appian has a right to negotiate its participation for up to 50% of any project financing with respect to development and construction, providing optionality to increased exposure as the Project advances through key technical and economic milestones.
Goldboro adds to Appian’s existing strong royalty portfolio that includes several attractive long-life assets across a diverse set of commodities, including: a gold stream on Asante Gold Corporation’s operating Bibiani and Chirano mines in Ghana, a lithium royalty on Lithium Ionic’s Bandeira Project in Brazil, a polymetallic royalty on US Strategic Metals’ processing and recycling facility in the US, and a potash royalty on Western Resources Corp’s Milestone Project in Canada.
McCarthy Tétrault LLP acted as the legal advisor to Appian.
Michael W. Scherb, Founder and CEO of Appian, commented: “We are pleased to partner with NexGold and support the advancement of a high-quality gold asset where we see significant upside potential. This royalty transaction is a strong example of Appian’s disciplined approach to deploying capital in projects with strong fundamentals and a clear development path. The transaction’s structure also provides Appian optionality for additional de-risked credit exposure as the project advances.”
Appian Capital Advisory Limited
Andrew Todd, Head of Communications: +44 7990416759 / [email protected]
+44 (0)20 7004 0951 / [email protected]
About Appian Capital Advisory Limited
Appian Capital Advisory Limited is the investment advisor to long-term value-focused private capital funds that invest in companies in metals, mining, and adjacent industries.
Appian is a leading investment advisor with global experience across South America, North America, Australia and Africa and a successful track record of supporting companies in metals, mining, and adjacent industries to achieve their development targets, with a global operating portfolio overseeing approximately 5,000 employees.
Appian has a global team of 100 experienced investment professionals, combining financial and technical expertise, with presences in Abu Dhabi, Beijing, Belo Horizonte, Dubai, Hong Kong, Lima, London, New York, Perth, São Paulo, and Toronto.
For more information, please visit www.appiancapitaladvisory.com, or find us on LinkedIn, Instagram or Twitter/X.
NexGold Mining Corp
Kevin Bullock, President & CEO: +1 (647) 388-1842/ [email protected]
Orin Baranowsky, Chief Financial Officer: +1 (647) 697-2625 /[email protected]
About NexGold Mining Corp.
NexGold Mining Corp. is a gold-focused company with assets in Canada and Alaska. NexGold’s Goliath Gold Complex (which includes the Goliath, Goldlund and Miller deposits) is located in Northwestern Ontario and its Goldboro Gold Project is located in Nova Scotia. NexGold also owns several other projects throughout Canada, including the Weebigee-Sandy Lake Gold Project JV, and grassroots gold exploration property Gold Rock. In addition, NexGold holds a 100% interest in the high-grade Niblack copper-gold-zinc-silver VMS project, located adjacent to tidewater in southeast Alaska. NexGold is committed to inclusive, informed and meaningful dialogue with regional communities and Indigenous Nations throughout the life of all our Projects and on all aspects, including creating sustainable economic opportunities, providing safe workplaces, enhancing of social value, and promoting community wellbeing.
Further details about NexGold are available at www.nexgold.com.
