NGEx Minerals (TSX: NGEX) is slated to provide value to shareholders via the spin-out of net smelter return royalties on both the Lunahuasi and Los Helados properties.
The transaction will see the creation of a 1% NSR on the wholly owned Lunahuasi project in Argentina, as well as a 2% NSR on the Los Helados project in Chile. The royalty on Los Helados will see 1.38% attributed to a new subsidiary referred to as RoyaltyCo, while 0.62% will be attributed to Nippon Caserones Resources, which reflects their pro-rata ownership in the project.
If approved by shareholders, the arrangement will see the establishment of a RoyaltyCo, with shares to be dividended out to shareholders on the basis of one RoyaltyCo share for every four shares held of NGEx. Once spun out, RoyaltyCo is expected to apply to list on the TSX Venture.
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NGEx is expected to retain a 19.9% ownership stake in RoyaltyCo.
“If approved, this transaction is expected to provide NGEx shareholders with long-term exposure to Lunahuasi and Los Helados through RoyaltyCo, which intends to apply to list its shares for trading on the TSXV following completion of the Arrangement. In addition, through NGEx’s anticipated holding of up to a 19.9% interest in RoyaltyCo, NGEx itself will also retain future exposure to a vehicle that is expected to use the royalties to spearhead future portfolio growth and diversification,” commented Wojtek Wodzicki, CEO of NGEx Minerals.
Shareholders of NGEx are expected to vote on the arrangement in September 2025.
NGEx Minerals last traded at $18.15 on the TSX.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
