Franco-Nevada Corporation has entered into a comprehensive financing transaction with Discovery Silver Corporation to support its proposed acquisition of the Porcupine Complex in Ontario from Newmont Corporation. The financing package includes a 4.25% net smelter return royalty for $300 million on production from the Porcupine Complex.
Additionally, the transaction provides Discovery Silver with a $100 million senior secured term loan, available to be drawn within two years of closing. Franco-Nevada also committed to approximately $49 million in equity participation as a cornerstone investment in a concurrent C$225 million Discovery equity raise.
Paul Brink, President & CEO of Franco-Nevada, stated that the company is delighted to support Discovery in this transformative transaction, which will add another cash-flowing gold asset to Franco-Nevada's portfolio. The Porcupine Complex is known for its historical gold production and extensive mineral resources, offering compelling upside potential. Franco-Nevada intends to finance these transactions from its existing cash on hand, maintaining its debt-free position.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.