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, which 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…
