Teranga Gold Corporation Completes Stream Financing Transaction
|Areas||Corporate Finance and Securities, Mining and Natural Resources|
Goodmans represented Franco-Nevada Corporation (“Franco-Nevada”) (TSX/NYSE:FNV) in connection with the completion of a US$135 million stream financing transaction with Teranga Gold Corporation (“Teranga”) (TSX:TGZ)(ASX:TGZ) on January 15, 2014. The funding from the stream financing transaction allowed Teranga to acquire the remaining interests of Oromin Joint Venture Group Ltd. that it did not previously own from Bendon International Ltd. and Badr Investment & Finance Company and to retire US$30 million of its US$60 million bank debt facility with Macquarie Bank Limited. The stream agreement has an initial 40 year term and requires Teranga to deliver 22,500 ounces of gold annually over the first six years to Franco-Nevada followed by 6% of production thereafter. Franco-Nevada's purchase price per ounce is set at 20% of the spot gold price.