Franco-Nevada, Osisko Gold acquire gold stream from SolGold Cascabel project

Franco-Nevada (FNV) announced that its wholly-owned subsidiary, Franco-Nevada Barbados Corporation, or FNB, has acquired a gold stream from SolGold (SLGGF) with reference to production from the Cascabel project located in Ecuador. FNB has partnered with Osisko Gold (OR) Royalties’ subsidiary, Osisko Bermuda, to provide a syndicated financing package on a 70%/30% basis. FNB will provide a total of $525M and Osisko a total of $225M of funding for a total $750M. FNB will provide $70M and Osisko $30 for a total of $100 in pre-construction funding available as three equal sized staged payments. The first tranche will be funded at closing with two further tranches, subject to development milestones. FNB will make $455M available and Osisko will make $195M available for a total of $650M towards construction once the project is fully funded and further derisked. Funding is subject to customary conditions including receipt of all material permits, a board approved construction decision and the balance of financing being available, including a minimum equity commitment. Cascabel is one of the largest copper-gold development projects in the world with total M&I Mineral Resource comprised of 3,735 million tons at 0.49% CuEq for 31.3M ounces of gold, 12.4M tons of copper, and 91.3M ounces of silver. Franco-Nevada intends to finance the transactions from cash on hand, with approximately $1.3B in cash and cash equivalents and $2.3B in available capital as at March 31.