Business
Franco-Nevada Adds to Royalties Portfolio and Initiates New ATM Equity Program
Franco-Nevada Adds to Royalties Portfolio and Initiates New ATM Equity Program Can...
About this update from Franco-nevada Corporation
[{"type":"text","content":"\n\n\n\nFranco-Nevada Adds to Royalties Portfolio and Initiates New ATM Equity Program\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, May 11, 2020\n\n\n\n(in U.S. dollars unless otherwise noted)\n TORONTO, May 11, 2020 /CNW/ - \nAlpala Royalty Acquisition \nThe Corporation today entered into an agreement with SolGold PLC (\"SolGold\") to acquire a 1% net smelter royalty (\"NSR\") with reference to all minerals produced from the Alpala copper-gold project in northern Ecuador for $100 million. The Alpala project is owned by Exploraciones Novomining SA, which is held 85% by SolGold and 15% by Cornerstone Capital Resources Inc. The NSR will cover the 4,979 hectare Cascabel concession and closing of the acquisition is subject to on-site confirmatory due diligence which will be completed once COVID-19 travel restrictions are lifted. In the interim, the Corporation has agreed to provide SolGold with a bridge loan of $15 million for a period of up to 8 months.  \nSolGold has the option to increase the size of the transaction to $150 million for a 1.5% NSR until January 11, 2021 and also has the option to buy-back 50% of the NSR for a period of time. Franco-Nevada is entitled to receive certain minimum royalty payments from 2028 and also has the option to convert the NSR to a gold NSR for a period of time after Alpala is producing.\nAs part of the royalty arrangements, the Corporation has agreed to contribute $150,000 per year for three years after closing to one or more of SolGold's local Ecuadorian environmental and social initiatives. SolGold has agreed to match or surpass such annual funding.\nAt-the-Market Equity Program\nFranco-Nevada has established an at-the-market equity program (the \"ATM Program\") that allows the Corporation to issue up to $300 million worth of common shares from treasury (\"Common Shares\") to the public from time to time at the prevailing market price through the Toronto Stock Exchange, the New York Stock Exchange or any other marketplace on which the Common Shares are listed, quoted or otherwise traded. The volume ...