TORONTO and VANCOUVER - Franco-Nevada Corp. and Gold Wheaton have agreed to a friendly business combination that will have Franco-Nevada paying approximately $830 million for the Vancouver company. Franco-Nevada is offering $5.20 per share, payable 60% in shares and 40% in cash.
One of the largest Gold Wheaton shareholders is Vancouver's Quadra FNX that expects to put about $262.6 million into its treasury by selling its 34.5% interest. Quadra FNX can use the money to advance its Victoria nickel-copper exploration project near Sudbury, ON, and its Sierra Gorda copper-molybdenum development project in Chile. (www.QuadraFNX.com)
Franco-Nevada's takeover of Gold Wheaton will give Franco substantial exposure to precious metals, starting with Gold Wheaton's 50% life-of-mine gold, platinum and palladium stream from Quadra FNX's footwall deposits in the Sudbury area. Also among the royalties that come with the Gold Wheaton purchase are gold streams from two of First Uranium's projects.
Details of the Franco-Nevada-Gold Wheaton arrangement are available at www.Franco-Nevada.com.
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