Franco-Nevada stream over Cascabel (Alpala) Copper-Gold Project

On July 15, 2024, Franco-Nevada Corporation ("Franco-Nevada") announced its wholly-owned subsidiary, Franco-Nevada (Barbados) Corporation ("FNB"), acquired a gold stream from SolGold plc ("SolGold") with reference to production from the Cascabel Project located in Ecuador.

Positioned to emerge as a significant South American copper and gold mine, the Cascabel Project is located in the Imbabura province of the Ecuadorian Andes and focuses on the Alpala deposit, a recent high-grade porphyry copper-gold discovery positioned at the frontier of the Eocene and Miocene metallogenic belts. It is 100% owned by SolGold.

FNB partnered with Osisko Gold Royalties Ltd.'s subsidiary, Osisko Bermuda Limited ("Osisko"), to provide a syndicated financing package on a 70/30 basis. FNB will provide a total of US$525 million in funding and Osisko a total of US$225 million for a total US$750 million.

FNB will provide US$70 million and Osisko US$30 million for a total of US$100 million in pre-construction funding available as three equal sized staged payments. The first tranche was funded at closing and will be followed by two additional staged deposits, subject to development milestones.

FNB will also make US$455 million available and Osisko will make US$195 million available for a total of US$650 million 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. 

Further information can be found on Canada Newswire’s website.

SolGold is an exploration company focused on discovering and developing world-class copper and gold deposits.

Franco-Nevada is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to many of the risks of operating companies.