Appian Capital Advisory LLP (“Appian” or the “Company”), the investment advisor to long-term value focused private equity funds that invest solely in mining and mining related companies, is pleased to announce it has entered into a definitive purchase agreement to sell the Caserones copper royalty (the “Royalty”) to Nomad Royalty Ltd. for total cash consideration of $23 million and two million common share purchase warrants of the buyer. Under the transaction documents, Appian will also be entitled to the Q1 2021 dividend and a third of the Q2 2021 dividend.
The Royalty interest is highly cash generative and represents an effective 0.28% net smelter return royalty over the Caserones mine in Atacama, Chile, owned by Minera Lumina Copper Chile.
The Caserones copper mine is a world class open-pit operation, located in a tier 1 mining jurisdiction with successful operational history and a long mine life with further expansion potential. The asset benefits from a significant historical investment of US$4.2bn and well established infrastructure, and is expected to produce significant volumes of copper and molybdenum over the long term.
The transaction is subject to customary closing conditions and regulatory approvals in Chile.
Michael W. Scherb, Founder and CEO of Appian, commented: “We are delighted to announce this transaction with Nomad who have sector leading growth potential and a high quality asset base.
“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.”
Guillermo Kaelin, Managing Partner and Head of Latin America, commented:
“Appian remains highly active in Latin America which is a core target jurisdiction for us. 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.”
