Ngex Minerals: 1.38% NSR to be allocated to new co. RoyaltyCo

Ngex Minerals: 1.38% NSR to be allocated to new co. RoyaltyCo

VANCOUVER, BC, July 22, 2025 /CNW/ - NGEx Minerals Ltd. ("NGEx") has announced plans to spin-out net smelter return ("NSR") royalties on its Lunahuasi and Los Helados Projects. The company intends to create a 1% NSR royalty on the Lunahuasi Project in San Juan Province, Argentina, and a 2% NSR royalty on the Los Helados Project in Region 3, Chile. A new subsidiary, RoyaltyCo, will hold a 1.38% NSR royalty on Los Helados, while Nippon Caserones Resources LLC ("NCR") will receive a 0.62% NSR royalty. Shareholders of NGEx will vote on the Arrangement at a special meeting on September 12, 2025. The Arrangement, subject to TSX and court approval, will see NGEx shareholders receive 1/4 of a share of RoyaltyCo for each share of NGEx held as of the Record Date [1].

NGEx's President and CEO, Wojtek Wodzicki, commented, "This transaction is expected to provide NGEx shareholders with long-term exposure to Lunahuasi and Los Helados through RoyaltyCo, which intends to list its shares on the TSX Venture Exchange following the Arrangement. RoyaltyCo will use the royalties to spearhead future portfolio growth and diversification, with NGEx retaining a 19.9% interest in the new company."

RoyaltyCo will apply to list its shares on the TSX Venture Exchange, subject to fulfilling all of the listing requirements. The Arrangement will involve the distribution of RoyaltyCo Shares to NGEx Shareholders, with no change in NGEx Shareholders' holdings. Following completion, NGEx is expected to hold up to a 19.9% ownership interest in RoyaltyCo, with the remaining shares distributed to NGEx Shareholders on a pro-rata basis [1].

The Arrangement must be approved by a special resolution passed by at least 662/3% of the votes cast by NGEx Shareholders present or represented by proxy at the September 12 meeting. Completion of the Arrangement is also subject to TSX and court approval. Full details of the Arrangement will be included in the management information circular to be mailed to NGEx Shareholders in connection with the meeting [1].

References:
[1] https://finance.yahoo.com/news/ngex-minerals-spin-royalties-shareholders-100000267.html