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Franco-Nevada provides $352m financing package for Brazil project

20th July 2022

By: Creamer Media Reporter

     

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TSX- and NYSE-listed Franco-Nevada is supporting G Mining Ventures with a construction financing package of $342.5-million for the Tocantinzinho gold project, in Brazil.

Franco-Nevada has acquired a gold stream with reference to production from the project for $250-million. Through one of its subsidiaries, Franco-Nevada has agreed to provide G Mining with a $75-million secured term loan and to subscribe for $27.5-million of shares.

“Tocantinzinho is an attractive project in a prolific district and located in a good jurisdiction. The G Mining Ventures team has a track record as one of the most capable mine-building teams in the industry. As a stream financing partner, we seek, through our financing and our involvement in projects, to help mine developers raise their full financial package on attractive terms.

“We are pleased to provide stream and debt financing to G Mining Ventures and along with two other strong strategic investors, La Mancha and Eldorado, to provide an equity component to fully finance the planned mine build,” said Franco-Nevada president and CEO Paul Brink.

Tocantinzinho is expected to be a low-cost, conventional openpit mining and milling operation. The project is construction-ready and first production is expected in the second half of 2024.

Based on expected mine performance, full-year contributions to Franco-Nevada from the project are expected to average about 24 500 gold-equivalent ounces a year over the first five years of full production.

Edited by Creamer Media Reporter

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