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

On May 11, 2020, Franco-Nevada Corporation ("Franco-Nevada") announced that it entered into an agreement with SolGold PLC ("SolGold") to acquire a 1% net smelter royalty ("NSR") with reference to all minerals produced from the Alpala copper-gold project in northern Ecuador for US$100 million. SolGold has the option to increase the size of the transaction to US$150 million for a 1.5% NSR until January 11, 2021 and also has the option to buy back 50% of the NSR for a period of time. Franco-Nevada is entitled to receive certain minimum royalty payments from 2028 and also has the option to convert the NSR to a gold NSR for a period of time after Alpala is producing.

Prior to closing, Franco-Nevada provided SolGold with a bridge loan of US$15 million for a period of up to 8 months. All amounts outstanding under the bridge loan were repaid by SolGold in full on closing.

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

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.

SolGold is an Australian exploration company focused on the discovery and definition of world-class copper and gold deposits.