Franco-Nevada royalty over Yanacocha Mine

On August 13, 2024, Franco-Nevada Corporation ("Franco-Nevada") announced that its wholly-owned subsidiary acquired an existing 1.8% net smelter return royalty from Compañía de Minas Buenaventura S.A.A. ("Buenaventura") and its subsidiary, Chaupiloma Dos De Cajamarca, on all minerals covering Newmont Corporation's ("Newmont") Yanacocha mine (“Yanacocha”) and adjacent mineral properties located in Peru.

100% owned by Newmont, Yanacocha is South America’s largest gold mine. It is located in the province and department of Cajamarca, approximately 800 km northeast of Lima, Peru. Its operations are situated between 3,500 and 4,100 m above sea level with development activities in four primary basins.

Consideration for the royalty, held by Chaupiloma Dos De Cajamarca, consists of

• US$210 million in cash paid to Buenaventura and its affiliate on closing, whereby the wholly-owned subsidiary of Franco-Nevada acquired Chaupiloma Dos De Cajamarca, which holds the royalty.
• a contingent payment of 118,534 common shares of Franco-Nevada, worth US$15 million as at signing, payable to Buenaventura and its affiliate upon the Conga project achieving commercial production for a full year prior to the 20th anniversary of closing.
• acquisition of a right of first refusal by Franco-Nevada on the sale of certain of royalty interests by Buenaventura and its affiliate, including an incremental royalty of 0.5% NSR on the Conga project and two additional royalties on certain other parts of the property.

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

Buenaventura is a Peruvian precious metals company engaged in the mining and exploration of gold, silver and other metals.

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