The Nisga’a Nation is pioneering a new way for Indigenous groups to benefit from resource royalties through the creation of Nations Royalty Corp., a company that consolidates royalties from First Nations mining projects. Listed on the TSX Venture Exchange and the Frankfurt Stock Exchange, Nations Royalty functions like a mutual fund for resource royalties, pooling payments from various mining operations. The Nisga’a Nation, which holds a 77% stake, is the company’s largest shareholder, with B.C. financier Frank Giustra holding 15.6%.
The company currently earns revenue from the Brucejack mine and holds royalties from four other mines in Nisga’a territory. If all five projects enter production, total royalty revenue could reach US$214 million. Nations Royalty aims to replicate the successful business models of companies like Wheaton Precious Metals, offering financing to mining projects in exchange for a share of revenue from commodity sales.
By pooling royalties from multiple projects, Nations Royalty reduces risk for investors while providing a stable return. The company is in talks with over 50 Indigenous groups across Canada and internationally, and while it currently focuses on precious metals, it may expand into base metals and oil and gas in the future.
