Franco-Nevada adds to net smelter royalty from Marathon Gold’s Valentine project
Marathon Gold (OTCQX:MGDPF) said Thursday it agrees to sell an additional 1.5% net smelter returns royalty on its Valentine gold project in Newfoundland and Labrador to Franco-Nevada (NYSE:FNV) for US$45M, resulting in Franco-Nevada holding an aggregate 3% NSR on the project.
Franco-Nevada (FNV) also has offered to purchase Marathon (OTCQX:MGDPF) common shares comprising the entire back-end of a C$6.9M non-brokered charity flow-through offering.
A feasibility study on the Valentine project in December outlined an open pit mining and conventional milling operation producing 195K oz/year of gold for 12 years within a 14.3-year mine life; construction began in October.
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