Franco-Nevada Corporation (TSX:FNV) has entered into a deal to acquire a significant royalty interest in the Côté Gold mine located in northeastern Ontario. The transaction, valued at $1.05 billion in cash, will see the Toronto-based royalty and streaming company take ownership of a 7.5% gross margin royalty covering gold production from key mineral claims at the site.
The agreement involves the Chester 1, 2, and 3 claims, which include all of the mine’s current proven and probable mineral reserves, as well as over 99.9% of its measured and indicated resources. These claims are core to the ongoing operations and long-term output of the Côté project. The royalty package is being acquired from a private third party, whose identity has not been disclosed. Franco-Nevada anticipates closing the transaction by the end of June.
Côté Gold is jointly owned by Iamgold Corporation, which holds a 70% stake, and Sumitomo Metal…
