Nations Royalty vs. Traditional Royalty
Benefits Agreements
Benefit agreements are agreements established between Resource Companies and Indigenous Communities. They are legally enforceable multi-faceted agreements established to manage the predicted impacts of development projects and to secure benefits (i.e. financial, employment, training) for impacted communities.
Financial benefits included within Benefit Agreements can include lump sum payments or royalties, which can be assignable under the agreement.
Royalty Agreements
Nations Royalty will seek to acquire additional royalties and similar financial entitlements (referred to here as “Royalties”) on mining projects that are part of the financial benefits that Indigenous Communities derive from their agreements with resource companies. These transactions will enable the Indigenous Communities to realize immediate value, typically in the form of cash and/or equity in Nations Royalty.
These acquisitions may be structured in various ways in response to several factors including commercial considerations, tax, and required consents; however, regardless of the acquisition structure, the other rights and entitlements afforded to the Indigenous Communities in their Benefit Agreements will remain with the Indigenous Communities.
