Vancouver, British Columbia. October 7, 2020 – Nova Royalty Corp. (TSXV:NOVR) (“Nova” or the “Company”) is pleased to announce that it has been advanced the initial $3.5M (the “Initial Advance”) under its convertible loan facility (the “Loan Facility”) with Beedie Capital (“Beedie”).
Alex Tsukernik, Nova’s President and CEO, commented, “We are pleased to close the first tranche of the Beedie financing facility and look forward to executing our strategy of building a premier royalty company focused on the building blocks of clean energy – copper and nickel.”
The Initial Advance will be used to fund the acquisitions of new royalties and streams. As more particularly set out in the news release of the Company dated October 1, 2020, the Initial Advance carries an interest rate of 8.0%, with Nova having the option to defer any interest payments during the first 24 months. The Initial Advance is convertible at the election of Beedie (subject to automatic conversion in certain circumstances) into a maximum of 3,500,000 common shares of the Company (“Nova Shares”) at a deemed conversion price of $1.00 per Nova Share. Nova Shares issued upon conversion of the Initial Advance will be subject to a 4-month and one day hold period expiring February 8, 2021.
Nova is a royalty company focused on providing investors with exposure to the building blocks of clean energy – copper and nickel. The Company is headquartered in Vancouver, British Columbia and is listed on the TSX Venture Exchange under the trading symbol “NOVR”.
ON BEHALF OF NOVA ROYALTY CORP.,
(signed) “Alex Tsukernik”
President and Chief Executive Officer
Phone: (604) 696-4241
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", “predicts”, “projects”, “intends”, “targets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information in this press release includes, but is not limited to, statements with respect to: statements with respect to the proposed use of proceeds from the Loan Facility and the Initial Advance; the activities contemplated in this news release and the timing and receipt of requisite regulatory approvals; proposed future transactions Nova may undertake and their expected timing, including acquisitions and equity financings; and management's expectations regarding Nova’s growth. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Nova to control or predict, that may cause Nova’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to, the risk factors set out under the heading “Risk Factors” in the Company’s final non-offering long form prospectus dated August 14, 2020 available for review on the Company’s profile at www.sedar.com. Such forward-looking information represents management's best judgment based on information currently available. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that 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 advised not to place undue reliance on forward-looking statements or information.