Franco-Nevada Announces Acquisition of 1.0% NSR on AngloGold's Arthur Gold Project in Nevada

Core Viewpoint - Franco-Nevada Corporation has acquired a 1.0% net smelter return royalty on AngloGold Ashanti's Arthur Gold Project for $250 million, with potential additional payments based on certain conditions, highlighting the project's significant growth potential in the gold sector [1][2]. Transaction Highlights - The acquisition includes a contingent cash payment of $25 million, dependent on the outcome of ongoing arbitration regarding the royalty's coverage [6]. - The Arthur Gold Project has seen a 20% year-over-year increase in its resource base, now totaling 3.4 million ounces of Indicated Mineral Resources and 12.9 million ounces of Inferred Mineral Resources [1][6]. - Franco-Nevada structured the transaction as an asset sale, utilizing cash on hand and a $175 million draw from its $1 billion credit facility for funding [6]. Key Transaction Terms - The royalty applies to a substantial land package in Nevada, covering most of the existing Mineral Resource of the Arthur Gold Project, with no step-downs or buy-down provisions [6]. - The project is expected to provide stable gold cash flow once in production, with ongoing arbitration potentially expanding the royalty footprint significantly [6]. - AngloGold is advancing a Preliminary Feasibility Study (PFS) for the project, expected to be completed by late 2025 or early 2026, focusing on both heap leach and milling operations [6]. Company Overview - Franco-Nevada Corporation is a leading gold-focused royalty and streaming company with a diversified portfolio of cash-flow producing assets, providing investors with gold price and exploration optionality while limiting exposure to cost inflation [7]. - The company trades under the symbol FNV on both the Toronto and New York stock exchanges, utilizing free cash flow to expand its portfolio and pay dividends [7].