Franco-Nevada To Buy Candelaria Gold & Silver Stream From Lundin For US$648 Mln

(RTTNews) - Franco-Nevada Corp. (FNV, FNV.TO) said Monday that it has agreed to acquire a gold & silver stream on production from the Candelaria and Ojos del Salado mines located in Chile from Lundin Mining Corp. (LUN.TO) upon the completion of the acquisition of Candelaria by Lundin from Freeport-McMoRan Inc. (FCX).

Candelaria is currently owned 80% by Freeport and 20% by Sumitomo Corp. and Sumitomo Metal Mining Co., Ltd.

Lundin has agreed to acquire Freeport's 80% interest in Candelaria for US$1.8 billion and Sumitomo will continue as a 20% partner.

Franco-Nevada will provide an up-front deposit of US$648 million to acquire a gold & silver stream and Franco-Nevada has agreed to subscribe for up to C$50 million in Lundin's planned subscription receipts financing.