Franco-Nevada acquires Yanacocha royalty
Toronto- and New York-listed Franco-Nevada has acquired an existing 1.8% net smelter return (NSR) royalty on all minerals covering Newmont’s Yanacocha mine, in Peru.
The company will pay Compania de Minas Buenaventura $210-million in cash and a contingency payment of $15-million in Franco-Nevada shares.
The royalty would contribute immediate cash flow following gold production from a leading gold operator, said Franco-Nevada president and CEO Paul Brink.
Newmont is aiming for 290 000 oz of gold at Yanacocha in 2024.
“Yanacocha has been one of the largest gold mines globally and the district covered by the royalty remains highly prospective with over 47-million gold equivalent ounces in total reserves and resources. The royalty covers current oxide production, the planned sulphide project and high-quality growth projects, including Conga, which together have the potential to add decades of contributions to Franco Nevada,” he stated.
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