Precious metals streaming firm Franco-Nevada has acquired an additional 1.5% net smelter return (NSR) royalty on the Valentine gold project for $45-million, TSX-listed Marathon Gold reported on Thursday.
Franco-Nevada now holds an aggregate 3% NSR on the project, which is located in the central region of Newfoundland and Labrador.
“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,” said president and CEO Matt Manson.
Franco-Nevada has been a royalty holder since 2019.
According to its feasibility study, Valentine could produce an average of 195 000 oz/y over a 14.3-year mine life.