Appian Capital Advisory has agreed to sell its royalty interest in the Chile-based Caserones copper mine to Nomad Royalty.
Under the deal, Appian will sell a 0.28% net smelter return royalty on the Caserones mine, which is operated by Minera Lumina Copper Chile.
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Minera Lumina Copper Chile is indirectly owned by JX Nippon Mining & Metals.
The deal consideration includes $23m in cash to Appian, as well as two million common share purchase warrants of Nomad.
Appian founder and CEO Michael W Scherb said: “This investment is a further example of Appian’s ability to 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 of 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.”
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By GlobalDataLocated in the Atacama region of Chile, the Caserones mine has a current estimated mine life of 19 years, with further expansion potential.
The deal is subject to customary closing conditions and regulatory approvals in Chile.
Appian managing partner and Latin America head Guillermo Kaelin said: “We are able to provide liquidity to private individuals who hold royalty interests over high-quality assets, and provide tailored financing solutions to owners of metals and mining assets.”
Appian expects the Caserones mine to produce significant volumes of copper and molybdenum over the long term.
The mine comprises an open-pit mining operation with a plant equipped to produce copper and molybdenum concentrates from primary sulfides.
It also includes a solvent extraction and electrowinning plant to produce copper cathodes with oxide ore processing, and mixed and secondary sulfides.
