CEO.ca – Long time silver-gold commentator David Morgan is trying to raise US$11 million to US$28 million to seed a new royalty company called Lemuria Royalties.
A website is up and a term sheet out.
The plan, according to the term sheet (US$1/unit with warrant at US$0.85), is to acquire royalty and streaming assets in the metals and mining sector and eventually launch an initial public offering on the TSX and in Sweden.
Lemuria doesn’t specify what kind of royalties it might prefer. But you have to think with Morgan leading the endeavour as President and CEO, precious metals and particularly silver will factor large.
Lemuria says it has “tentative agreements” to acquire five assets.
The Lemuria team includes Christopher Marchese as CFO and vice president of project evaluation and Abraham Drost, vice president of technical services. Marchese has a banking background, including with Morgan Stanley, while Drost has straddled the financial and junior worlds. Past posts include President and CEO of Sabina Gold & Silver and President of Sandspring Resources.
If successful in raising its seed money, the Lemuria team will join a very competitive sector for NSRs and streams. While it’s not so hard to find willing sellers of NSRs, it is difficult to score high-quality streams or royalties on producing mines or development projects near or likely to be near production.
In this it will be interesting to see what deals Lemuria is capable of pulling off, as it goes head to head with other more seasoned royalty companies.
So far Lemuria says it has raised about $5 million.
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