04:56 AM EDT, 09/18/2026 (MT Newswires) -- Nativo Resources (NTVO.L) and Chancery Royalty Ltd. signed a conditional binding letter of intent aimed at securing project funding for the first phase of the La Patona gold ore processing plant at Acarí, Peru. Chancery will provide $3.5 million through seven monthly tranches of $500,000 each, subject to further definitive documentation, according to a Friday filing. Proceeds will fund the first-phase construction, commissioning, and associated infrastructure for the La Patona plant, with commissioning slated for the second quarter of 2027. The precious metals company will also raise a further 600,000 pounds sterling through Chancery's subscription of 142,857,143 new Nativo shares, and other investors' subscription for the same amount of shares at 0.0021 pound apiece. Chancery is expected to own an 8.7% stake in Nativo upon completion of the transaction. In exchange for the funding, Nativo will grant Chancery a 6% gross revenue share on gold produced at La Patona until it receives an aggregate commercial return of 3,034 troy ounces of gold, and a 1.5% gross revenue share for the plant's remaining life.

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