NuevaUnión Royalty

NuevaUnión Royalty

Project: NuevaUnión Copper-Gold with Molybdenum credits

Ownership: 50:50 JV between Teck Resources Limited (“Teck”) and Newmont Corporation

Location: Huasco Region, North-Central Chile

Royalty: 2.0% NSR covering all copper royalty revenue from the Cantarito block within the La Fortuna deposit. The royalty is owned via a joint venture with Metalla Royalty & Streaming, who will receive all the gold royalty revenue from the Cantarito block. BatteryOne acquired the royalty from a private seller in February 2020, with the expectation that copper will account for approximately 75% of the total Cantarito NSR revenue. The Cantarito block is one of the main historically explored areas of the La Fortuna deposit, and accounts for a meaningful proportion of total La Fortuna resource and mine plan tonnage based on prior technical reports.

As of December 31, 2019, Teck reported the following reserves and resources at La Fortuna:

Project Summary: NuevaUnión is a 50:50 JV between Teck and Newmont (formerly Goldcorp), who combined their respective Relincho and La Fortuna (formerly El Morro) deposits.  NuevaUnión is one of the largest undeveloped copper-gold projects in the world. A Prefeasibility Study (“PFS”) released in April 2018 showed an average annual production of 224,000 tonnes of copper, 269,000 ounces of gold and 1,700 tonnes of molybdenum annually over the first 5 years.

On February 20, 2020, The Mining Journal and Mining.Com reported that Teck and Newmont are investing US$152mm into the NuevaUnion project to focus on drilling the deep extensions of the La Fortuna deposit. Based on an evaluation request filed with Chile’s environmental evaluation service (SEA), the property owners reportedly plan to conduct two drilling campaigns, totaling up to 176 holes, with the objective of characterizing the deposit at depth, and laying the foundations for the development of a mining plan focused on La Fortuna deposit’s deep levels.

NuevaUnión is currently focused on completing a Feasibility study and Environmental Impact Study (“EIS”), while also continuing to work closely with all stakeholders to address any additional ESG concerns. Teck has guided the completion of the Feasibility Study to Q1 2020.