First Quantum Minerals and Franco-Nevada Corporation Agree Terms for Additional Precious Metals Stream Agreement
September 07 2017 - 5:00PM
PR Newswire (Canada)
(In United States dollars, except where noted
otherwise)
TORONTO, Sept. 7, 2017 /CNW/ - First Quantum Minerals
Ltd. ("First Quantum" or the "Company", TSX Symbol "FM") today
announced that it has agreed terms for an additional precious
metals stream agreement on the Cobre Panama project with
Franco-Nevada (Barbados)
Corporation ("FNB"), a wholly-owned subsidiary of
Franco-Nevada Corporation (TSX Symbol "FNV", NYSE Symbol
"FNV") subject to final documentation. The Company intends to use
the proceeds to fund the entire first installment of its previously
announced acquisition of an additional 10% interest in Cobre Panama
from LS-Nikko Copper Inc.
ADDITIONAL STREAM AGREEMENT DETAILS:
- The US$178 million purchase price
will be paid as a one-time advance payment upon closing of the
transaction which is expected to occur by the end of September 2017. No additional pro-rata funding
will apply to the additional stream.
- The terms of the additional stream, other than the on-going
price, will mirror FNB's existing stream on Cobre Panama, including
initially linking precious metals deliveries to copper in
concentrate shipped for approximately the first 25 years of
production. FNB will initially pay an on-going price of 20% of the
spot price of gold and silver until 302,000 ounces of refined gold
and 4.8 million ounces of refined silver have been delivered.
Thereafter, the on-going price will increase to 50% of the
prevailing spot price of gold and silver.
On Behalf of the Board of Directors of First Quantum Minerals
Ltd.
G. Clive
Newall
President
For further information, visit our website at
www.first-quantum.com.
SOURCE First Quantum Minerals Ltd.
Copyright 2017 Canada NewsWire
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