Franco-Nevada to Buy Royalty Package on Cote Gold Mine in Ontario

By Adriano Marchese

Franco-Nevada plans to acquire a royalty package on the Cote Gold Mine in Ontario from a private third party for $1.05 billion in cash.

Franco-Nevada, a gold-focused royalty-and-streaming company, said Tuesday that it entered into an agreement to acquire the 7.5%-gross-margin royalty package that covers all of the mineral reserves and over 99.9% of current mineral resources from the mine.

The Cote Gold Mine is operated through an joint venture by IAMGOLD, which owns 70% of the JV and Sumitomo Metal Mining, which owns the other 30%.

Torongo-based Franco-Nevada said the royalty adds immediate gold revenue from a major new gold mine in Ontario, which began commercial production in August of 2024 and is still in the process of ramping up output.

The acquisition is expected to close at the end of the second quarter of this year.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

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