Nord Precious Metals Enters Into Debt Conversion Agreement With Granada Gold Mine Inc.

Nord Precious Metals Mining Inc. (NTH) entered into a Debt Conversion Agreement with Granada Gold Mine Inc. on July 30, 2026. The agreement extinguishes $3 million in debt owed by Granada to Nord. In exchange, Nord acquires a 3% Net Smelter Return (NSR) royalty on Granada’s Gold Property located near Rouyn-Noranda, Quebec.

The transaction is classified as related-party, as three of Nord’s directors (Frank J. Basa, Matthew Halliday, and Daniel Barrette) also serve as directors of Granada. These directors declared their interests and abstained from voting. Granada retains a repurchase option to buy back the 3% NSR for $3 million, payable as a lump sum or in $1 million tranches (each repurchasing 1% of the NSR).

Closing is conditional upon TSX Venture Exchange approval. No disinterested shareholder approval is required under Multilateral Instrument 61-101. Nord will file a material change report within 21 days prior to closing.

Nord Precious Metals Mining Inc. (NTH) has converted a receivable into a royalty asset, a move that follows the company’s recognition of a $426,112 impairment on amounts due from Granada in Q1 2026, signaling that the debt was already viewed as risky. For a company operating with a working capital deficit and an explicit going concern warning, forgiving $3 million in cash debt to acquire a small, unproven gold royalty represents a significant cash flow sacrifice.

The royalty offers long-term optionality but generates no immediate revenue or cash flow. The related-party nature of the transaction, combined with the absence of independent valuation or shareholder approval, has raised governance concerns. The market likely already priced in the need for debt restructuring or asset swaps, meaning the announcement does not introduce genuinely new, unexpected, or market-moving information. Instead, it is an incremental corporate development that aligns with typical junior mining balance sheet management. The impact is neutral to slightly positive over a multi-year horizon if the Quebec gold property produces, though near-term liquidity remains constrained.

Nord Precious Metals Mining Inc. operates in Ontario’s historic Cobalt Camp, focusing on high-grade silver and cobalt exploration and processing. Its flagship assets include the Castle East high-grade silver-cobalt deposit and the Gowganda Silver Tailings project. The company operates TTL Laboratories, the only permitted high-grade milling facility in the Cobalt Camp, and has acquired a 600 t/d automated modular gravity plant.

The company’s strategy centers on a hub-and-spoke model: processing historic tailings and underground material through TTL, while advancing a 30,000-metre drill program to expand the Castle East resource and identify district-scale opportunities. Nord Precious Metals Mining Inc. also holds a 35% interest in Coniagas Battery Metals and a lithium project in Ontario, though these are secondary to the core silver-cobalt focus.