Business
Teranga to Enter into Stream Transaction with Franco-Nevada to Acquire Remaining Interest in OJVG and to Retire Half of Bank Debt
Combination expected to provide greater growth, flexibility and higher free cash flows to ...
About this update from Franco-nevada Corporation
[{"type":"text","content":"\n\n\nCombination expected to provide greater growth, flexibility and higher\n free cash flows to Teranga and guaranteed ounce delivery to\n Franco-Nevada with potential to share in Teranga's exploration success\n\n\nHighlights of Transactions for Teranga\n\n\n\nEnters into a stream transaction with Franco-Nevada to fund the\n acquisition and debt retirement\n\n\nAcquires the balance of Oromin Joint Venture Group Ltd. (\"OJVG\")\n\n\nRetires US$30 million of US$60 million bank debt facility\n\n\nPositions the Company to reach phase 1 growth objective of 250,000 to\n 350,000 ounces of annual gold production in Senegal.1\n\n\nProvides for significant operating flexibility to maximize free cash\n flows\n\n\nDevelops a pipeline of near, medium and long term production growth on\n an emerging gold belt\n\n\nRetains focus on protecting the balance sheet and best positions\n shareholders to benefit from a rise in gold prices\n\n\n\nHighlights of Transaction for Franco-Nevada\n\n\n\nAttractive stream asset that is expected to be one of Franco-Nevada's\n top contributors\n\n\nDelivers stable and immediate cash flows and increases gold contribution\n within our portfolio\n\n\nInvestment in a well-run operation with an established track record and\n favourable cost structure\n\n\nExcellent exploration potential on land covering a 70km strike extent on\n an emerging mineral belt\n\n\n\nTORONTO, Dec. 12, 2013 /CNW/ - Teranga Gold Corporation (\"Teranga\")\n (TSX/ASX:TGZ) and Franco-Nevada Corporation (\"Franco-Nevada\")\n (TSX/NYSE:FNV) are pleased to announce that they have agreed to enter\n into a US$135 million stream transaction that has allowed Teranga to\n enter into definitive share purchase agreements with Bendon\n International Ltd. (\"Bendon\") and Badr Investment & Finance Company\n (\"Badr\") to acquire the balance of the OJVG that it does not already\n own and to retire US$30 million of its US$60 million debt facility with\n Macquarie Bank Limited (\"Macquarie\").  On completion of these\n transactions, the combination of Sabodala and the OJVG satellite\n deposits is expected to allow Teranga to reach its phase 1 growth\n objective of 250,000 to 350,000 ounces of gold production leveraging\n off of its existing mill and infrastructure.  The combination also\n provides operating flexibility to sequence pits and phas...