FULL DISCLOSURE: Nord Precious Metals is a sponsor of theDeepDive.ca.
Nord Precious Metals (TSXV: NTH) has expanded its ownership interests in the Cobalt region of Ontario, with the announcement this morning that it has acquired Battery Mineral Resources’ (TSXV: BMR) Gowganda silver tailings project. The project is expected to provide immediate feedstock potential for Nord’s processing operations.
The transaction sees Nord acquire four mining leases in the region, which contain a historical resource estimate of 1.94 million tonnes at 47.5 g/t silver for an estimated 2.96 million ounces of silver. That historical estimate comes from the tailings of production that occurred at the Capital and Miller Lake-O’brien mine complexes.
The acquisition is inline with Nord’s strategy of capitalizing on a regulatory shift seen in Ontario, which provides for an expedited permitting process for the reprocessing of tailings. Effective July 1, 2025, Ontario introduced a pathway allowing companies to obtain permits for reprocessing tailings in as little as 80 days, a process that historically took years.
Nord already possesses a distinct advantage in this regard via their ownership of a fully permitted processing facility, TTL Laboratories, located in Cobalt, Ontario. By mating this processing facility with the Gowganda tailings project, Nord has secured a faster route to cash flow via the reprocessing of surface tailings and leveraging the new 80-day permitting window than would have been provided by the development of their high-grade Castle property.
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Under the terms of the arrangement, Nord has agreed to pay $2.25 million in initial consideration, comprising of a $1.0 million cash payment and the issuance of $1.25 million in shares. A 3.0% net smelter returns royalty is also in play, while deferred consideration of $1.25 million is to be paid on each of the first, second, and third anniversaries of the closing date of the transaction, up to 50% of which may be satisfied in the form of shares.
“The Transaction allows us to realize on the value of the silver tailings and includes royalty upside to provide ongoing exposure to the asset. Upon completion of this Transaction, we will become a shareholder of Nord and will continue to support and encourage their efforts,” commented Laz Nikeas, CEO of Battery Mineral Resources, on the transaction.
Nord Precious Metals has yet to comment on the arrangement.
The transaction is currently expected to close in mid-January.
Nord Precious Metals last traded at $0.29 on the TSX Venture.
FULL DISCLOSURE: Nord Precious Metals is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Nord Precious Metals. The author has been compensated to cover Nord Precious Metals on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
