(All dollar amounts are in United States dollars unless otherwise specified)

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Nova Royalty Corp logo. (CNW Group/Nova Royalty Corp.)

VANCOUVER, BC, February 8, 2022 /CNW/ – Nova Royalty Corp. (“Nova“or the”Society“) (TSXV: NOVR) (OTCQB: NOVRF) is pleased to announce that, following its press release dated January 10, 2022he finalized his acquisition (the “Transaction“) of an existing net smelter yield of 0.135% (“NSR“) royalty on the copper world and Rosemont copper projects in Arizona (the “Royalties“), owned by Hudbay Minerals Inc. (TSX: HBM) (NYSE: HBM). Nova has also obtained a right of first refusal on an additional 0.540% NSR covering the same area as the royalty.

The aggregate purchase price of the Transaction included an initial consideration of $1.0 million in liquid (“Closing cash payment“) and $0.5 million in common shares of Nova (“Counterpart shares“), of which Nova issued 214,610 consideration shares to $2 CAD0.950940 per share, calculated based on the twenty-day volume-weighted average trading price of Nova common stock up to and including January 7, 2022.

An additional amount of $4.0 million in cash will be payable as follows:

  • $1.0 million in cash, payable at the earliest between: (i) 12 months after the closing of the Transaction; and (ii) Nova completing a single equity financing, generating aggregate net proceeds to Nova of at least $10.0 million

  • $3.0 million in cash, payable no later than: (i) 12 months after the announcement of the start of production from the Royalty Area; and (ii) Nova’s receipt of the first three Royalty payments.

Other terms of the transaction were as disclosed in Nova’s press release dated January 10, 2022.

Nova has also completed its previously announced withdrawal (the “Sampling“) of a supplement 1.5 million Canadian dollars (the “Direct debit amount“) under its existing Amended and Restated Convertible Loan Facility with Beedie Capital (the “Beedie Capital Facility“). The drawing will increase the total amount drawn under the Beedie Capital Facility to 6.5 million Canadian dollarswith a supplement 18.5 million Canadian dollars remaining at the disposal of the Company. The Beedie Capital Facility bears an interest rate of 8.0% per annum on advanced funds and 1.5% per annum on reserve funds.

The Withdrawal Amount is convertible by Beedie Capital into 426,845 ordinary shares of the Company at a conversion price of C$3.514152 per share which is based on a 20% premium above the 30-day volume-weighted average trading price of Nova common shares on the TSX Venture Exchange (“TSXV“) calculated up to and including January 7, 2022, under the terms of the Beedie Capital Facility‎. All common shares of the Company issued upon conversion of the drawdown amount will be subject to a hold period commencing on May 26, 2022.

A portion of the levy amount was used to fund the closing cash payment and the balance will be used for general and administrative purposes.

Nova has received conditional acceptance from TSXV to complete the drawdown, which remains subject to final acceptance from TSXV.

About Nova

Nova is a royalty company that aims to provide investors with exposure to the key building blocks of clean energy – copper and nickel. The Company has its registered office at Vancouver, British Columbia and is listed on the TSX Venture Exchange under the symbol “NOVR” and on the United States OTCQB under the symbol “NOVRF”.

On behalf of Nova Royalty Corp.,

(signed) “Alex Tsukernik”
President and CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. The forward-looking statements contained herein are made as of the date of this press release only, and the Company undertakes no obligation to update or revise them to reflect new information, estimates or opinions, future events or results. or otherwise, except as necessary. by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is planned”, “budgets”, “expected”, “estimates”, “forecasts”. “, “predicts”, “projects”, “intends”, “targets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of these words and expressions or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be performed. Forward-looking information contained in this press release includes, but is not limited to, potential for exploration and expansion, production, recoveries and other anticipated or possible future developments in the Rosemont and/or Copper World projects, current commodity prices, royalty payment frequency, current and potential future estimates of mineral reserves and resources; future commercial production of the Rosemont and/or Copper World projects or other designated areas; and obtaining any required regulatory approvals for royalty acquisitions. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond Nova’s ability to control or predict, which may cause Nova’s actual results, performance or achievements to differ materially from those expressed or implied. as such, and are made on the basis of assumptions regarding these risks, uncertainties and other factors set forth herein, including, but not limited to, the risk factors set forth under the heading “Risk Factors” in the notice. annual report of the Company dated April 30, 2021 available for review on the company profile at This forward-looking information represents management’s best judgment based on information currently available. Except as required by applicable securities laws, the Company assumes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are cautioned not to place undue reliance on any forward-looking statements or information.

SOURCE Nova Royalty Corp.



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