Franco-Nevada Acquires Additional Precious Metals Streams on Cobre Panama from First Quantum Minerals and KORES Totaling US$356 Million
|Areas||Banking and Finance Law, Corporate and Commercial, Corporate Restructuring, Mining and Natural Resources|
Goodmans represented FNB in its agreement to acquire a precious metals stream on Korea Resources Corp.’s (“KORES”) 10% indirect interest in the Cobre Panama project (“Cobre Panama”) for US$178 million. The terms are the same as the US$178 million precious metals stream announced in September in connection with First Quantum Minerals Ltd.’s (“First Quantum”) acquisition of a separate 10% interest from LS-Nikko Copper Inc. FNB, First Quantum and KORES entered into a definitive purchase and sale agreement January 19, 2018 and the transaction closed in March. Upon closing, FNB has precious metal stream interests covering 100% of the ownership of Cobre Panama. FNB will fund the combined US$356 million without a syndication partner. FNB’s existing precious metals stream has been in place since 2015 and covers First Quantum’s 80% interest in Cobre Panama. This is a US$1 billion commitment with FNB funding prorated to First Quantum’s project expenditures. To the end of 2017, FNB has funded US$727 million under the original stream and has a balance of US$273 million remaining.