Ngex Minerals: Create 1% NSR royalty on 100% Lunahuasi project

Ngex Minerals: Create 1% NSR royalty on 100% Lunahuasi project

NGEx Minerals Ltd. (TSX: NGEX) has announced plans to spin-out net smelter return (NSR) royalties on its Lunahuasi and Los Helados projects. The company will create a 1% NSR royalty on the 100% owned Lunahuasi Project, located in San Juan Province, Argentina, and a 2% NSR royalty on the Los Helados Project in Region 3, Chile [1].

The spin-out will be achieved through a statutory plan of arrangement under the Canada Business Corporations Act. Shareholders of NGEx will vote on the arrangement at a special meeting on September 12, 2025. The arrangement is subject to approval by at least 662/3% of the votes cast by NGEx shareholders present in person or represented by proxy, as well as Toronto Stock Exchange and court approval [1].

The spin-out will create a new subsidiary, RoyaltyCo, which will hold the NSR royalties. NGEx shareholders will receive 1/4 of a share of RoyaltyCo for each share of NGEx held as of the record date. RoyaltyCo intends to apply for listing on the TSX Venture Exchange (TSXV) following the completion of the arrangement, subject to fulfilling all TSXV listing requirements [1].

NGEx Minerals is a copper and gold exploration company based in Canada, focused on the exploration of the Lunahuasi and Los Helados projects. The Lunahuasi project is located in San Juan Province, Argentina, while the Los Helados project is located in Region III, Chile, approximately nine kilometers to the northeast of the Caserones mine [1].

The spin-out is expected to provide NGEx shareholders with long-term exposure to the Lunahuasi and Los Helados projects through RoyaltyCo. NGEx itself will retain a 19.9% interest in RoyaltyCo, allowing it to benefit from future portfolio growth and diversification [1].

References:
[1] https://www.newswire.ca/news-releases/ngex-minerals-to-spin-out-royalties-to-shareholders-826398350.html