Franco-Nevada Corporation announced that its wholly-owned subsidiary, Franco-Nevada (Barbados) Corporation, has entered into a $500 million precious metals stream agreement with Sibanye-Stillwater Limited. This stream references specific production from Sibanye-Stillwater's Marikana, Rustenburg, and Kroondal mining operations located on the Western Limb of the Bushveld Complex in South Africa.
The stream primarily consists of a gold component for the life of mine and a platinum component for approximately 25 years. This arrangement is designed to provide a more stable gold equivalent ounce delivery profile to Franco-Nevada (Barbados) Corporation over the specified period.
For Sibanye-Stillwater, this agreement allows for the monetization of future gold and platinum production, bolstering its balance sheet and reinforcing its financial position at a competitive cost of capital. This strategic investment further diversifies Franco-Nevada's portfolio and enhances its exposure to long-life assets.
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