Franco-Nevada and Inmet complete US$1 billion precious metal streaming agreement for the Cobre Panama Project
Torys acted as counsel to Inmet Mining with a team that included Ian Arellano, Scott Kraag, Mike Amm, Eric Foster, Simon Williams and Rory McGillis.
On August 20, 2012, Franco-Nevada Corporation (TSX: FNV, NYSE: FNV) (Franco-Nevada) and Inmet Mining Corporation (TSX: IMN) (Inmet) announced that their subsidiaries have agreed to terms for a precious metals stream on the Cobre Panama copper project in Panama. The Cobre Panama copper project is one of the world's largest copper-gold-silver-molybdenum porphyry deposits currently being constructed. Inmet owns 80% and Korea Panama Mining Corp. owns 20% of Minera Panama, S.A. owner and developer of the Cobre Panama project.
Franco-Nevada will commit US$1 billion to Inmet's share of the development costs of Cobre Panama. The amount of previous metals deliverable under the stream is indexed to the copper in concentrate produced from the entire project and approximates 80% of the payable precious metals attributable to Inmet's 80% ownership based on the current 31 year mine plan. Beyond the currently contemplated mine life, the previous metals deliverable under the stream will be based on a fixed percentage of the precious metals in concentrate.
Inmet Mining Corporation is a Canadian-based global mining company that produces copper, zinc and gold, with operations in Turkey, Spain, Finland, Canada, Papua New Guinea and a copper development project in Panama.
Franco-Nevada Corporation is a gold-focused royalty and stream company with additional interests in platinum group metals, oil and gas and other resource assets.
Further information can be found on Canada Newswire's website.