Mining News
Franco-Nevada ups its Marathon Gold royalty, buys shares
Marathon Gold (TSX: MOZ) announced today the sale of an additional 1.5% net smelter returns royalty on its Valentine Gold project to Franco-Nevada for US$45 million.
Franco-Nevada will now hold an aggregate 3.0% NSR on the project. In addition, Franco-Nevada has offered to purchase common shares of the corporation comprising the entire back-end of a C$6.9 million non-brokered charity flow-through offering for which Marathon has firm commitments at a price of C$1.0488 per flow-through share. Marathon intends to use the proceeds of the offering for eligible exploration expenditures at the project.
Matt Manson, President and CEO, commented on the deal.
“We are very happy to be announcing this amendment to our royalty arrangements with Franco-Nevada, which sees their NSR royalty on the Valentine Gold Project increase to 3% for consideration of US$45 million," said Manson. "With this transaction, we have strengthened our balance sheet for the Valentine build in a substantial fashion, while maintaining a disciplined overall approach to our capital structure."
