New World Resources (ASX:NWC) has satisfied all pre-conditions to the sale of a 0.9% net smelter return (NSR) royalty on future metal production from its flagship Antler Copper Project in Arizona to Trident Royalties (LSE:TRR).
The company says it has received in full the $11 million funds as part of the transaction with UK-listed Trident.
The royalty financing has provided New World with substantial funding on terms that are considerably more attractive and less dilutionary than alternative conventional equity funding, the company says.
Proceeds of the royalty funding will be used to accelerate resource expansion at the Antler Copper Project and expedite the development of mining operations.
“Concurrently, we’re continuing to advance the Antler Project towards production as quickly as practicable. Preparation of mine permit applications and feasibility study work continues to progress well“
New World Managing Director Mike Haynes says the company is now well funded to accelerate its dual-track strategy of expanding the project’s resource base while concurrently obtaining approvals to commence mining.
“This could lead to the delineation of additional resources that may enable us to extend the life of, or expand the scale of, the Antler mining operation. We have one diamond core drill rig operating at Antler now. With any early success, we will look to rapidly expand the exploration effort with additional rigs.
Concurrently, we’re continuing to advance the Antler Project towards production as quickly as practicable. Preparation of mine permit applications and feasibility study work continues to progress well.”
Write to Adam Orlando at Mining.com.au
Images: New World Resources
