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Franco-Nevada to Acquire a Precious Metals Stream from Glencore for US$500 Million
TORONTO, ONTARIO--(Marketwired - Feb. 10, 2016) - Franco-Nevada Corporation ("Franco-Nevada" or the "Company") (TSX:FNV)(NYSE:FNV) is pleased to announce that
About this update from Franco-nevada Corporation
[{"type":"text","content":" TORONTO, ONTARIO--(Marketwired - Feb. 10, 2016) - Franco-Nevada Corporation (\"Franco-Nevada\" or the \"Company\") (TSX:FNV)(NYSE:FNV) is pleased to announce that its wholly-owned subsidiary, Franco-Nevada (Barbados) Corporation (\"FNB\") has agreed to acquire a precious metals stream with reference to production from the Antapaccay mine for US$500 million (\"Glencore Stream\"). The Antapaccay mine is located in Southern Peru and is wholly-owned and operated by Glencore plc and its subsidiaries (\"Glencore\"). \"Franco-Nevada is pleased to partner with Glencore,\" said David Harquail, President and CEO of Franco-Nevada. \"Following our recent Antamina and Candelaria investments, this is yet another step in strengthening and diversifying Franco-Nevada's portfolio with some of the best mining projects in the world. This investment is expected to be immediately accretive and provide our shareholders with gold price optionality over multiple cycles and potential further exploration and expansion upside.\" Transaction Highlights Another cornerstone investment: The Glencore Stream is referenced to production from the Antapaccay open pit mine which has been expanding throughput rates and production since late 2012. It is on the same property as the Tintaya mine that operated for almost 30 years. Glencore has invested in excess of US$1.5 billion to develop Antapaccay into a low cost operation with production that ranks amongst the top 20 copper mines globally. Immediately accretive: Franco-Nevada is expecting 60,000 to 70,000 gold equivalent ounces (\"GEOs\")1 applicable to deliveries from the stream in 2016. Due to the timing of concentrate shipments, Franco-Nevada expects 11 months of deliveries to contribute to revenues in 2016. Near term growth: Total throughput from the Antapaccay plant and Tintaya plant is expected to increase to 105,000 tpd by mid-2016. Full year contributions to Franco-Nevada from the Glencore Stream are expected to average 70,000 to 80,000 GEOs1 per year over the next 5 years. Glencore's current mine plan (based on Mineral Reserves) projects production to 2030. Alignment with Glencore: Under the streaming agreement, precious metal deliveries are initially referenced to copper in concentrate shipped. FNB will receive 300 ounces of gold and 4,700 ounces of silver for each 1,000 tonnes of copper in concentrate sh...