Nevada Canyon said it has created a wholly-owned subsidiary that will focus on entering the carbon credit market.

The Canyon Carbon subsidiary will work with Boise, Idaho-based Warm Springs Consulting. Warm Springs will provide an analysis and evaluation of a variety of carbon credit royalties, as well as investments in the carbon offset projects in Nevada and the Western United States.

Warm Springs will first evaluate market demand for carbon credits, and analyse potential revenue levels for rangeland soil carbon sequestration for grassland ecosystems in the western region.

The consultancy will also evaluate the possibility of coupling carbon credits with sage grouse ecosystem credits.

Warm Springs will also assess the royalties streaming business model and the marketability of carbon credits in North America's mining sector.

"Carbon credits are already bigger than most commodity markets and will continue to grow," Nevada Canyon chief executive Jeffrey Cocks said.

"With new government legislations and market pressures for carbon neutrality, this will be a must-have for every company. Future demand is already projected to far exceed supply."

Warm Springs has led projects for Perpetua Resources and at Integra Resources' DeLamar mine.

A correction has been made to correct Nevada Copper with Nevada Canyon.