NVRO Metals (TSXV: NVRO) has raised $35 million (US$24.57 million) to fund the acquisition of Northern Territories Resources.
The money was raised through a brokered private placement and concurrent non-brokered subscriptions. The brokered portion was conducted by ATB Cormark Capital Markets and Cantor Fitzgerald Canada Corporation, as co-lead agents and joint bookrunners. The company issued more than 269 million units at a price of 13¢ apiece.
The company has agreed to acquire all of the issued and outstanding shares of Northern Territories through its subsidiary NVRO Australia. In doing so, the company will establish NVRO Metals Hub, a critical minerals production platform that will use the company’s NVRO Process.
Supply agreements
In anticipation of the NVRO Metals Hub, the company has entered two supply agreements.
NVRO has agreed to purchase tailings from Hecla’s Greens Creek mine in Alaska for processing at the NVRO Metals Hub. The agreement has an initial term of five years from the first shipment and provides up to 750,000 tonnes of material per year.
It has also entered into an offtake and prepayment agreement with Transamine for 100% of the copper cathode to be produced at the NVRO Metals Hub. In return, Transamine will provide up to US$10 million for commissioning activities toward copper cathode production, and up to US$5 million for general working capital.
NVRO says it expects the acquisition of Northern Territories to occur in the coming days.
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