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Norvista Capital Announces New Core Investment: Great Bear Royalties
Toronto, Ontario--(Newsfile Corp. - September 9, 2021) - Norvista Capital Corporation (TSXV: N...
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[{"type":"text","content":"Norvista Capital Announces New Core Investment: Great Bear RoyaltiesToronto, Ontario--(Newsfile Corp. - September 9, 2021) - Norvista Capital Corporation (TSXV: NVV) (\"Norvista\" or the \"Company\") is pleased to announce a new core investment in its portfolio, Great Bear Royalties Corp. (TSXV: GBRR). Over the last three months the Company has accumulated a position of 79,467 shares (as at August 31, 2021) at an average cost of $3.99 per share, representing approximately 3.5% of Norvista's recently announced August 31, 2021 NAV per Share of C$0.126.Samuel Pelaez, the Company's President, CEO, CIO and Director stated: \"We think Great Bear Royalties is worth approximately C$14/share based on our research of the deposit, comparable transactions, and possible mine plans for the Dixie Project.\" Mr. Pelaez continued, \"The 2% NSR it holds on the Dixie Project, in our view is a Tier 1 Royalty, which is very scarce and we believe the market is underestimating the scale and potential upside of the anticipated maiden resource at Dixie. We expect that the coming news flow over the medium term should act as the catalyst to re-rate this stock.\"Norvista believes that shares of Great Bear Royalities could be worth C$14/share assuming a 10 million ounce gold resource at Dixie and US$1,800 per ounce gold. Although Norvista does not expect the maiden resource to surpass 10 million ounces, it expects the ultimate mineable resource to exceed that number. Our estimates assume average annual production of 400,000 gold ounces per year starting in 2025, however, with a significant skew toward higher production in the early years exceeding 800,000 ounces per year.Norvista's Investment Thesis on Great Bear Royalties:Royalties on Tier 1 Assets are Scarce - Suggest Great Bear Royalties Should Attract Multiple Suitors: In particular, royalties on Tier 1 Assets in mining friendly jurisdictions are even harder to find. There is no comparable listing comprised solely of a Tier 1 royalty in Canada or similarly-good jurisdiction. Norvista's view is that this type of royalty has the potential to be a cornerstone asset of a royalty company, and as such believe there is likely to be more potential buyers for Great Bear Royalties than for the Dixie project itself. Not only will the potential buyers of Great Bear Resources Ltd. (TSXV:GBR) want to consolidate this...