Franco-Nevada lands $1B royalty on Ontario’s Côté Gold mine

Canada’s Franco-Nevada (TSX, NYSE: FNV) has agreed to acquire a royalty package on the Côté Gold mine in Ontario from a private third party for $1.05 billion in cash.The Toronto-based royalty and streaming company said the deal includes a 7.5% gross margin royalty on gold production from the Chester 1, 2, and 3 claims. These claims encompass all proven and probable mineral reserves and more than 99.9% of current mineral resources at the site.Côté is one of Canada’s newest and most advanced large-scale gold mines, with a mineral resource base exceeding 16 million ounces in the measured and indicated categories. It is operated as a joint venture between Iamgold (TSX: IMG, NYSE: IAG), which holds a 70% stake, and Sumitomo Metal Mining, which owns the remaining 30%.The mine produced its first doré bar in April last year, reached commercial production that August, and continues to ramp up. Once fully operational, Côté is expected to become Canada’s third-largest gold mine. In its first six years, the mine is projected to produce 495,000 ounces of gold annually, with a life-of-mine average of 365,000 ounces per year.Franco-Nevada expects the transaction to close by the end of June.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com