Nomad Royalty Company Ltd. (TSX: NSR) (OTCQX: NSRXF) is pleased to announce that it has entered into an agreement with private vendors to acquire an effective 0.351% net smelter return royalty on the producing Caserones mine located in the Atacama region of Chile for a cash consideration of US$27.25 million. Under the terms of the Agreement, Nomad will be entitled to the Q2 dividend payment from Compania Minera Caserones  (expected during Q3). The acquisition of the Royalty is in addition to the effective 0.28% net smelter return royalty on the Caserones mine purchased in May 2021. Following the completion of the transaction, Nomad will hold an effective 0.63% net smelter royalty on the Caserones mine, having invested a total of US$50.25 million.

Transaction Highlights

• Increases exposure to a large scale producing mine in Chile
• Increases royalty interest in a prudent and measured manner – adding to existing asset
• Strengthens Nomad’s free cash flow profile
• Greater exposure to an operating mine with a large land package and in proximity of large copper discoveries:
  • Los Helados – NGEX Minerals (10 kilometres)
  • Josemaria – Josemaria Resources (20 kilometres)
  • Filo del Sol – Filo Mining (28 kilometres)
• Continues to demonstrate Nomad’s ability to source and execute royalty transactions, with 6^th acquisition since June 2020

Caserones Royalty

The Royalty consists of an effective 0.351% net smelter return royalty on the tenements comprising the Caserones mine, located on a land package of ~17,000 hectares.

Transaction Details

As part of the transaction, Nomad will acquire shares representing a 37.5% ownership interest in CMC, a private Chilean contractual mining company which holds the payment rights to 32.5% of a 2.88% net smelter return royalty on the Caserones mine. Upon closing, Nomad will become a registered shareholder of CMC and will be party to a shareholders agreement which provides for, among other things, distribution of all royalty payments net of Chilean income taxes. Following the completion of the transaction, Nomad will hold 67.5% of the shares of CMC.

As consideration for the Share Acquisition, Nomad will pay a cash consideration of US$27.25 million to the Vendors. Nomad expects to fund the Cash Consideration through its revolving credit facility.

Subject to certain conditions, including the registration in Nomad’s name of the shares of CMC being acquired by Nomad in the shareholders registry of the Custodian of Mines of Santiago, Chile, the closing of the Share Acquisition is expected in August or early September 2021.

Share Capital:

As at August 19, 2021, the Company had 56,655,818 common shares, 1,407,972 share options and 24,881,734 common share purchase warrants outstanding entitling the holders to purchase 2,488,174 common shares. The Company also had 209,879 restricted share units, 78,500 performance share units and 131,580 deferred share units outstanding. Pursuant to the deferred payment payable to Yamana Gold Inc. and based on the CAD $/US$ daily exchange rate published by the Bank of Canada on August 18, 2021, 1,403,272 common shares (on a post-consolidated basis) would be issuable should the conversion option be exercised on such date.

QUALIFIED PERSON

Vincent Cardin-Tremblay, P. Geo., Vice President, Geology of Nomad Royalty is the “Qualified Person” as defined by NI 43-101 who has reviewed and approved the technical content of this news release.

ABOUT NOMAD

Nomad Royalty Company Ltd. is a gold & silver royalty company that purchases rights to a percentage of the gold or silver produced from a mine, for the life of the mine. Nomad owns a portfolio of 15 royalty and stream assets, of which 8 are on currently producing mines. Nomad plans to grow and diversify its low-cost production profile through the acquisition of additional producing and near-term producing gold & silver streams and royalties.