PERU · MINING · GOLD
Key Facts
- —The company Nativo Resources is a small London-listed company that wants to mine and process gold in southern Peru. Its shares trade on AIM, the London Stock Exchange’s market for growth companies.
- —The plant La Patona, in Acarí in Peru’s Arequipa region, is designed to recover gold from 70 tonnes of ore a day using cyanide leaching. It sits about 45 kilometres from Nativo’s Tesoro gold concession.
- —What happened Chancery Royalty, a Bermuda-based gold and silver royalty company, announced on 13 October a binding US$3.5 million package to finish the plant. Nativo’s own filing of 18 September calls the deal a conditional letter of intent.
- —The price Chancery gets 6 percent of La Patona’s gold revenue until it has received the equivalent of 3,034 ounces, then 1.5 percent for life. At Friday’s gold price, 3,034 ounces are worth about US$12.6 million.
- —When Commissioning is targeted for the second quarter of 2027. The money arrives in seven monthly instalments of US$500,000, the first by 31 December.
- —What it means for you Gold above US$4,100 an ounce is pulling royalty money into Peru’s small processing plants. Nativo’s existing lender is a fund run by Yorkville Advisors Global of New Jersey.
- —Power Index Peru ranks 5th of 14 in The Rio Times Latin America Power Index, with 54.7 points (October 2026 edition).
- —Still open Whether the definitive financing documents have been signed, and where the plant’s third-party ore will come from.
Nativo Resources, a small London-listed gold company, has lined up US$3.5 million from Chancery Royalty to finish its La Patona gold processing plant in Acarí, in Peru’s southern Arequipa region. Chancery announced what it called a binding deal on Tuesday 13 October, and the Lima business daily Gestión reported it on Sunday 18 October with a start-up date in the second quarter of 2027.
For US investors, the deal shows how gold above US$4,100 an ounce is drawing royalty money into Peru’s small-scale processing business. In return for the cash, Chancery takes a slice of La Patona’s gold revenue for the life of the plant, rather than interest on a loan.
What the Deal Says
Chancery will advance the US$3.5 million in seven monthly instalments of US$500,000, the first no later than 31 December 2026, Nativo told the London Stock Exchange on 18 September. The money may only be spent on building and commissioning Phase 1 of La Patona, related infrastructure and defined working capital, not on repaying Nativo’s existing debts.
In exchange, Chancery receives 6 percent of the gross revenue from all gold processed at La Patona until it has received the equivalent of 3,034 troy ounces. After that its share falls to 1.5 percent for the rest of the plant’s life, and Nativo has no right to buy the royalty back.
On top of the project finance, Chancery and investors it introduced paid £600,000 (about US$800,000) for 285.7 million new Nativo shares at 0.21 pence (about US$0.003) each. Chancery says that buys it a 16 percent stake, while Nativo’s filings put the new shares at about 17 percent of the enlarged company, split between Chancery and its investors.
The investors also received 142.9 million warrants, rights to buy more shares at 0.32 pence (about US$0.004) for three years, and Chancery gets a right of first refusal over later expansions and Nativo’s wider pipeline. Dollar figures for sterling amounts use the pound’s closing rate of US$1.3327 on Friday 16 October.
Binding Deal or Letter of Intent
The two companies describe the status differently. Chancery’s 13 October release says it has entered into a binding agreement, while Nativo’s 18 September filing called it a conditional binding letter of intent, with the US$3.5 million subject to further definitive documentation.
Nativo has not announced the signing of those documents in any stock-exchange filing since. Its most recent filings, from 9 to 13 October, cover the share issue to Chancery’s group and changes to earlier warrants.
Live Market IntelligenceCommodities — Live Market Board
Rio Times · Live Market Intelligence
Commodities — Live Market Board
-0.03%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| GOLD | 4,461 | +1.78% | +33.20% | 4,383 | 4,503 | 4,421 | 139,824 |
| SILVER | 65.59 | +1.26% | +73.05% | 64.77 | 66.98 | 64.81 | 46,406 |
| BRENT | 88.88 | -0.03% | +34.42% | 88.91 | 90.07 | 88.12 | 29,713 |
| WTI | 83.11 | -0.11% | +31.57% | 83.20 | 84.35 | 82.40 | 166,848 |
| COPPER | 6.61 | +0.03% | +46.70% | 6.61 | 6.71 | 6.61 | 39,543 |
| LITHIUM | 75.20 | +1.47% | +62.95% | 74.11 | 75.80 | 75.08 | 89,275 |
| IRON ORE | 161.91 | — | +58.10% | 161.91 | 161.91 | 1 | |
| SOY | 1,184 | +3.20% | +17.05% | 1,148 | 1,199 | 1,168 | 163,179 |
| CORN | 480.50 | +10.02% | +29.34% | 436.75 | 480.75 | 459.50 | 341,248 |
| WHEAT | 655.00 | +3.93% | +29.70% | 630.25 | 657.75 | 631.50 | 128,793 |
| COFFEE | 317.25 | -5.51% | +0.67% | 335.75 | 321.20 | 313.55 | 21,747 |
| SUGAR | 16.43 | -1.79% | -3.01% | 16.73 | 17.11 | 16.22 | 171,992 |
| COCOA | 5,719 | +3.18% | -34.96% | 5,543 | 5,779 | 5,574 | 26,773 |
| ORANGE JUICE | 138.55 | -0.47% | -45.38% | 139.20 | 141.05 | 137.50 | 703 |
| COTTON | 85.03 | +2.33% | +26.78% | 83.09 | 82.90 | 81.96 | 16,546 |
| BEEF | 223.60 | -3.93% | -5.18% | 232.75 | 226.40 | 223.00 | 16,126 |
| CATTLE | 339.10 | -3.16% | -1.82% | 350.17 | 345.50 | 338.60 | 10,164 |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
The Plant and the Plan
La Patona is a leaching and cyanidation plant, which dissolves gold out of crushed ore with a cyanide solution, designed to treat 70 tonnes of ore a day in Phase 1. It sits about 45 kilometres from Nativo’s wholly owned Tesoro gold concession, and Nativo says several million dollars have already been invested in the site.
Construction should take five to six months once it restarts, which is why Nativo now expects commissioning in the second quarter of 2027. Chief executive Stephen Birrell said cash flow from Phase 1 is expected to pay for later phases that would lift capacity to 350 tonnes a day.
Nativo plans to process its own ore and ore from third parties. Chancery describes the deal as exposure to near-term production and to a potentially scalable tolling pipeline in Peru, meaning plants that process other miners’ ore for a fee.
A Small Company With Debts
Nativo has funded itself through repeated share sales, which Chancery’s release calls the “endless cap-in-hand equity raises” of the past. It also owes £1.68 million (about US$2.24 million) under a £2.1 million (about US$2.8 million) unsecured loan from YA II PN, a fund managed by Yorkville Advisors Global of Mountainside, New Jersey.
Nativo announced on 2 October that the lender had agreed to a pause in principal repayments for September, October and November 2026. Nativo said the cash it saves will go into building La Patona.
Chancery’s release says Nativo’s shares jumped nearly 160 percent after the deal was announced. Closing prices on AIM show the shares more than doubled between 17 September and 2 October, then fell back, ending Friday 16 October about 48 percent above their 17 September close.
Who Chancery Is
Chancery Royalty is a Bermuda-based gold and silver royalty company that says it holds six producing or near-producing royalties, in the United States, Brazil, Canada, Finland, Ethiopia and now Peru. Chief executive Jeremy Gray said it aims to grow its gold-equivalent ounces from 4,000 in 2027 to more than 28,000 by 2030.
What It Means for You
For US investors, La Patona is a micro-cap bet rather than a market mover, but it shows how royalty finance is reaching small plants in Peru’s gold belt. At Friday’s gold price of about US$4,165 an ounce, Chancery’s 3,034-ounce threshold is worth about US$12.6 million, against US$3.5 million advanced.
To reach that threshold at a 6 percent share, La Patona would have to sell gold equivalent to roughly 50,600 ounces. How long that takes depends on ore grades and throughput that Nativo has not yet shown in production.
What Is Not Known
It is not known whether Nativo and Chancery have signed the definitive financing documents that Nativo’s filing required. The final agreement itself has not been published.
Nativo has not said who will supply third-party ore to La Patona or how it will check that the ore comes from legal, formal miners. The plant’s ore grades, costs and expected first-year output have also not been published.
Frequently Asked Questions
What is La Patona?
La Patona is a gold processing plant in Acarí, in Peru’s Arequipa region, owned by London-listed Nativo Resources. Phase 1 is designed to treat 70 tonnes of ore a day using cyanide leaching.
How much is Chancery Royalty putting in?
Chancery is advancing US$3.5 million in seven monthly instalments of US$500,000, and with investors it introduced it bought new Nativo shares for £600,000 (about US$800,000). In return it receives 6 percent of the plant’s gold revenue until it has received 3,034 ounces, then 1.5 percent.
When will La Patona start producing gold?
Nativo expects to commission Phase 1 in the second quarter of 2027. Construction is expected to take five to six months once it restarts.
Sources: Nativo Resources, RNS, Project Finance and Equity Subscription Agreement, 18 September 2026, Nativo Resources, RNS, Tranche B shares, 23 September 2026, Nativo Resources, RNS, Loan Facility Update, 2 October 2026, Nativo Resources, RNS, Tranche A shares and warrants, 9 October 2026, Nativo Resources, RNS, warrant exercise, 13 October 2026, Chancery Royalty, press release via ACCESS Newswire, 13 October 2026, Gestión, La Patona financing and start date, 18 October 2026, US Securities and Exchange Commission, adviser record for Yorkville Advisors Global. All retrieved 19 October 2026. Share-price moves are from AIM closing prices; the gold value of the 3,034-ounce threshold is calculated at Friday’s closing gold price.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief