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Franco-Nevada and First Quantum Minerals Announce US$178 Million Precious Metals Streams Agreement for Cobre Panama Project
TORONTO, Sept. 7, 2017 /CNW/ - Franco-Nevada is pleased to announce that its wholly-owned subsidiary, Franco-Nevada (Barbados) Corporation ("FNB"), has agreed
About this update from Franco-nevada Corporation
[{"type":"text","content":"TORONTO, Sept. 7, 2017 /CNW/ - Franco-Nevada is pleased to announce that its wholly-owned subsidiary, Franco-Nevada (Barbados) Corporation (\"FNB\"), has agreed with First Quantum Minerals Ltd. (\"First Quantum\") to terms for an additional precious metals stream from the Cobre Panama project for a purchase price of US$178 million. FNB may syndicate one-third of the transaction to a third party and the transaction is subject to final documentation.1 First Quantum intends to use the proceeds to partially fund its previously announced acquisition of an additional 10% interest in Cobre Panama from one of its joint venture partners, LS Nikko Copper Inc.2 \"We are pleased to support our partner and increase our interest in the Cobre Panama project,\" said David Harquail, CEO of Franco-Nevada. \"First Quantum has made tremendous progress de-risking the project and advancing it toward commissioning in late 2018.\" Transaction Highlights Growth: Cobre Panama is one of the world's largest copper-gold-silver-molybdenum porphyry projects. The project was recently reported to be over 60% complete and is scheduled to ramp up production beginning in late 2018. First Quantum anticipates further potential expansions underpinned by the scale and high quality of the resource.3 Strong Margins: FNB will initially pay an on-going price of 20% of the spot price of gold and silver until 302,000 ounces of refined gold and 4.8 million ounces of refined silver have been delivered. This additional stream will have higher margins than the existing stream for the current mine plan. Thereafter, the on-going price will increase to 50% of the prevailing spot price of gold and silver. Purchase Price: The US$178 million purchase price will be paid as a one-time advance payment upon closing of the transaction which is expected to occur by the end of September. No additional pro-rata funding will apply to the additional stream. Stream Terms: The terms of the additional stream, other than the ongoing price, will mirror FNB's existing stream on Cobre Panama, including initially linking precious metals deliveries to copper in concentrate shipped for approximately the first 25 years of production.4 Corporate Summary Franco-Nevada Corporation is the leading gold-focused royalty and stream company with the ...