Franco-Nevada closes US$920 million bought deal financing

On February 19, 2016, Franco-Nevada Corporation (Franco-Nevada) closed its previously announced cross-border public offering of 19,228,000 common shares, including the exercise in full by the underwriters of the over-allotment option, at a price of US$47.85 per offered share for aggregate gross proceeds to Franco-Nevada of approximately US$920 million. The offered shares were sold on a bought-deal basis through a syndicate of underwriters co-led by BMO Capital Markets, CIBC Capital Markets, RBC Capital Markets and Scotiabank.

Franco-Nevada plans to use the net proceeds of the offering primarily to fund its acquisition of a precious metals stream for production from Glencore's Antapaccay mine located in Peru. The balance of the net proceeds will be added to the working capital of the company and used for further investments, other general corporate purposes, and/or used to pay down its credit facility.

Franco-Nevada is the leading gold-focused royalty and stream company with the largest and most diversified portfolio of cash-flow producing assets.

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