Franco-Nevada Corporation announced an agreement to acquire an existing royalty package on the Côté Gold Mine in Ontario for a total cash consideration of $1,050 million. The royalty package consists of a 7.5% gross margin royalty on mineral production from the Chester 1, 2 & 3 claims, which cover over 99.9% of the current Mineral Resources at the mine.
The Côté Gold Mine, operated by IAMGOLD Corporation and Sumitomo Metal Mining Co. Ltd., is one of Canada's newest, large-scale, and most modern gold mines. It boasts an extensive gold Mineral Resource base of more than 16 million ounces of Measured and Indicated Mineral Resources and 4 million ounces of Inferred Mineral Resources.
The acquisition is expected to close at the end of Q2 2025, with an effective date of the earlier of closing or July 1, 2025. Franco-Nevada is well-positioned to finance this transaction from its available capital, which includes approximately $2 billion in liquidity and quarterly free cash flow generation of $275 million to $300 million. The deal also includes an option for IAMGOLD and Sumitomo to buy down up to 50% of the royalty in two equal tranches.
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