New World secures $11m funding
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Subiaco-based New World Resources has secured $11 million from a UK mining royalty and streaming company, to fund its Antler Copper project in the US state of Arizona.
New World Resources announced on the ASX that it has entered a binding agreement with UK-based Trident Royalties, a company listed on the London Stock Exchange.
Under the agreement, Trident will buy a 0.9 per cent net smelter return royalty on future metal production from New World’s flagship Antler project in northern Arizona.
The $11 million exchange also includes a 0.45 per cent royalty over any additional mineral rights New World acquires within five kilometres of the Antler copper project.
New World managing director Mike Haynes said the $11 million would go towards the resource base expansion and expedition of development activities at the Antler project, without diluting the company’s shareholders.
“Trident’s royalty funding follows a competitive process,” he said.
“Trident has undertaken extensive due diligence on the project, so this represents another strong endorsement of New World’s expansion and development strategy to become a significant North American copper producer.
“The company is now well financed to continue to advance the Antler copper project towards initial production, which is targeted to coincide with a period when a substantial shortfall in global copper supply is forecast.”
In its announcement, New World said it would retain the right to buy back 0.3 per cent of the project area royalty for $9 million and/or 0.15 per cent of the mineral rights royalty for $4 million.
New World engaged Argonaut PCF as its financial adviser.
In July, Resources Capital Funds made a $5 million equity investment in New World.
“These two investments exemplify the confidence strategic partners have in New World’s ability to continue to expand the resource base while concurrently bringing the Antler copper project into production in the near term,” the company said in its announcement.
New World shares were trading at 3.2 cents each, up 23.08 per cent, as of 1.46pm AEDT today.