Yesterday, Nations Royalty and the Nisga'a Nation released a new documentary highlighting the Nisga'a Nation's long-standing leadership in economic self-determination and its efforts to build lasting prosperity for its people. Titled Nations Rising, the film explores the strength of Indigenous collaboration and traces the Nisga'a's path toward the founding of Nations Royalty — now recognized as the largest majority Indigenous-owned public company in Canada.

The Driller recently sat down with Nations Royalty to talk about its formation.

Q) Nations Royalty's TSX listing marked a historic moment for Indigenous economic participation. What were some of the biggest challenges in getting to this point, and how did the company overcome them? 

A) As Canada’s first majority-Indigenous owned company in a world where capital markets have historically held up barriers for Indigenous Peoples, Nations Royalty’s listing on the TSX last year marked a significant milestone in Indigenous inclusion and capacity in capital markets. 

Our journey to this point is built upon the foundation laid by the Indigenous leaders who fought for the rights to their land, ultimately leading to negotiation of strong benefit agreements with resource companies. For decades, many Indigenous Groups have worked hard to take advantage of this evolving legal landscape, enabling them to leverage their resources and create long-term, sustainable wealth for their families and future generations. 

Given the historical barriers faced by Indigenous Peoples in the capital markets, our company’s TSX listing demonstrates the incredible leadership of the Nisga’a Nation in paving the way for Indigenous Groups to explore the potential in the public capital markets and create further opportunities for economic growth.

 

Q) The mining royalty model isn’t new, but Nations Royalty has introduced a unique approach tailored to Indigenous communities. Can you explain how this model differs from traditional royalty structures and why it’s so significant?
 
A) Nations Royalty has the unique advantage of giving investors access to the last untapped space of mining royalties – Indigenous-owned royalties. 

In Canada, most natural resource projects have Impact Benefit Agreements with affected Indigenous groups, which can include royalties. These agreements, made in consultation with Indigenous leaders and their communities, have provided Indigenous Peoples with access to valuable royalties on operating and advanced-stage assets in Canada. 

Nations Royalty’s business model hinges on partnerships with Indigenous Groups across the country, offering them equity in the company in exchange for all or a part of their future royalty payments. As the first movers in this space, Nations Royalty has the potential to bring together hundreds of millions of dollars in Indigenous-owned royalties, while offering Indigenous Peoples an opportunity to bring forward the value of these payments to create wealth through capital markets.

 

Q) How does Nations Royalty ensure that Indigenous communities not only unlock financial value from their royalties but also maintain long-term control and benefits from their resources? 

A) Our company operates on the belief that Indigenous wealth should remain in Indigenous hands. Nations Royalty’s business model provides Indigenous Groups access to all the benefits of a partnership with a royalty company, while ensuring that royalty assets continue to be owned by Indigenous Peoples. 

By partnering with us, Indigenous Groups retain a strong interest in their royalty assets while also unlocking the maximum value of their royalty through a diversified portfolio, thereby lowering the risks associated with holding a single asset. Relying on payments from a single mine carries the inherent risk of those payments stopping due to unforeseen events, such as a work interruption or sudden closure. We offer a solution by helping Indigenous Groups exchange their single revenue stream from one mine for access to a diversified portfolio of projects that mitigates risk in the long-term. 

Through Nations Royalty, Indigenous Groups are also able to access the net present value of their mining royalty today, enabling them to explore new opportunities for wealth creation and economic development. By accessing the value of their royalties now, partners can unlock funds to use as they see fit to address the current needs in their communities, facilitating the creation of key infrastructure, and environmental and social programming. And as major shareholders of the company, Indigenous Groups will continue to reap the benefits of other mines and projects for generations, sustaining their communities for years to come.

 

Q) With Nations Royalty’s backing from prominent figures like Frank Giustra, how does this support impact the company’s growth strategy and the broader mission of Indigenous economic empowerment? 

A) Nations Royalty is supported by Frank Giustra, one of Canada’s most successful mining entrepreneurs who was recently inducted into the Canadian Mining Hall of Fame. With Frank’s backing, the Nisga’a Nation transferred all five of their royalties in exchange for shares in Nations Royalty – marking the beginning of our first-of-a-kind company. 

As the founder of Wheaton Precious Metals and other top mining royalty companies, Frank Giustra’s support as an advisor lends significant credibility and expertise to our vision to becoming a leader in the mining royalty space in Canada and beyond.

 

Q) Looking ahead, what are Nations Royalty’s key goals for expanding its portfolio and increasing Indigenous representation in the mining and financial sectors? 

A) Nations Royalty’s path to growth is similar to that of other mining royalty companies, with our major differentiator being that we are the only majority Indigenous-owned mining royalty company that is operating in the Indigenous-owned and controlled royalty space. Right now, we’re looking to secure partnerships with other Indigenous Groups across Canada to exchange their royalties for a stake in our company and access to a diversified portfolio. 

Our work in attracting more partners involves building trust with Indigenous Groups and communicating the value of a mining royalty model for advancing Indigenous economic strength. As we grow as a company, we are excited to help build Indigenous communities’ capacity in capital markets, helping them leverage the tools that will set them up for long-term economic success.