Friday, August 22, 2025

Franco-Nevada Spends $1.05 Billion Acquiring Royalty On IAMGOLD’s Cote Gold Mine

Franco-Nevada (TSX: FNV) is the new owner of an existing royalty package that exists at IAMGOLD’s (TSX: IMG) Cote Gold Mine. The company has acquired the package from a third party in a private transaction.

The arrangement has seen Franco-Nevada pay total cash consideration of $1.05 billion for a 7.5% gross margin royalty on the mine. The royalty applies to mineral production from the Chester 1, 2 and 3 claims, with those claims featuring all the mineral reserves at the project, alongside 99.9% of current mineral resources.

Deductions from the gross margin royalty include cash operating costs and excludes capital, exploration, depreciation and other non-cash costs.

Concurrent with the closing of the transaction, the royalty arrangements are to be replaced with a new royalty agreement with IAMGOLD and their joint venture partner at Cote, Sumitomo, which have the same terms but provide for clarified audit and information rights. As part of this effort, IAMGOLD and Sumitomo have been granted an option to buy down up to 50% of the royalty at Franco-Nevada’s attributable costs in two equal tranches.

Notably, the royalty is currently cash flowing. At $3,200 gold, the royalty is said to have implied costs attributable to it of $770 to $930 an ounce, which based on annual guidance, suggests implied revenue of $67 million annually from the royalty.

The purchase is expected to be financed from available capital, with the effective closing date of the transaction being the earlier of closing and July 1, 2025.

Franco-Nevada last traded at $232.61 on the TSX.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

A Medical Breakthrough the Market Overlooked | David Elsley – Cardiol Therapeutics

Why Grade Beats Size in Silver Mining | Frank Basa – Nord Precious Metals

Are Investors Missing the Start of the Next Commodity Supercycle? | Morgan Lekstrom – NexMetals

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

EMX Royalty Borrows $35 Million From Franco-Nevada To Repay Sprott Loan

EMX Royalty (TSX: EMX) is trading one lender for another, after borrowing $35 million from...

Thursday, June 20, 2024, 09:05:33 AM

Silver Company Buys A Gold Mine For Nearly A Half Billion | Discovery Silver

It seems the market is about to get a new gold producer. The development follows...

Saturday, February 1, 2025, 01:06:00 PM

Franco-Nevada’s Record Q2 2025 Revenue Marred By Cash Drain

Franco-Nevada (TSX: FNV) posted record Q2 2025 revenue at $369.4 million, a 42% jump from...

Monday, August 11, 2025, 11:18:00 AM

Franco Nevada Q3 Earnings: The Road To Recovery

Last quarter we published our first coverage of Franco-Nevada’s (TSX: FNV) earnings, and, quite rightly,...

Saturday, November 9, 2024, 01:22:00 PM

Franco-Nevada Acquires Gold, Platinum Stream From Sibanye-Stillwater

Franco-Nevada (TSX: FNV) has acquired a new precious metals stream following a transaction with Sibanye-Stillwater....

Thursday, December 19, 2024, 08:52:38 AM