Franco-Nevada royalty over Magino Gold Project
Torys acted as counsel to Franco-Nevada in its US$52.5 million acquisition of a 2% net smelter return royalty from Argonaut Gold Inc. in connection with the Magino gold project in Ontario, Canada, as well as its US$10 million equity investment in the project owner, Argonaut Gold.
On October 27, 2022, Argonaut Gold Inc. (“Argonaut Gold”) announced that it closed the sale of a 2% net smelter return royalty on the Magino Project and surrounding land package to Franco-Nevada Corporation ("Franco-Nevada") for US$52.5 million. Argonaut Gold also completed a US$10 million equity private placement to Franco-Nevada. Under the terms of the private placement, 34,693,462 common shares of Argonaut Gold were issued to Franco-Nevada at a price of C$0.3931 per common share.
Further information can be found on Canada Newswire’s website.
The Magino gold project is a construction-stage open-pit mine located in northern Ontario at the site of a past producing underground gold mine, approximately 14 km southeast of the town of Dubreuilville.
Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production.
Franco-Nevada is the leading gold-focused royalty and streaming company with a large and diversified portfolio of cash-flow producing assets.
Torys also acted on the following in connection with this project:
| Jurisdiction | Algoma District |
| Province/State | Ontario |
| Country | Canada |
| Nature of Engagement | Royalty Agreement, M&A |
| Client | Franco-Nevada |
| Client Role | Acquiror |
| Value | $62,500,000 USD |