First Quantum sells another precious metals stream on Cobre Panama
VANCOUVER (miningweekly.com) – Canadian precious metals streaming firm Franco-Nevada has added another gold/silver stream on First Quantum’s massive $5.5-billion Cobre Panama project, in Panama.
First Quantum intends to use the proceeds to partially fund its acquisition of a further 10% interest in Cobre Panama from one of its joint venture partners, LS Nikko Copper.
Toronto-based Franco-Nevada has agreed to pay $178-million as an upfront advance payment upon closing of the transaction, which is expected to occur by the end of September.
In return, it will pay an on-going price of 20% of the spot price of gold and silver until 302 000 oz of refined gold and 4.8-million ounces of refined silver have been delivered. Thereafter, the on-going price will increase to 50% of the prevailing spot price of gold and silver.
The terms of the additional stream, other than the on-going price, will mirror Franco-Nevada’s existing stream on Cobre Panama, including initially linking precious metals deliveries to copper in concentrate shipped for about the first 25 years of production. However, this additional stream will have higher margins than the existing stream for the current mine plan.
Cobre Panama is one of the world’s largest copper/gold/silver/molybdenum porphyry projects. The project was recently reported to be over 60% complete and is scheduled to ramp up production starting in late 2018. First Quantum expects further potential expansions, underpinned by the scale and high quality of the resource.
Franco-Nevada stated that it might syndicate one-third of the transaction to a third party and the transaction is subject to final documentation.
First Quantum recently reported that the process to put in place project financing for the Cobre Panama project continues. Market sounding of banks and export credit agencies was recently undertaken, with the total funding process completion targeted for the end of 2017.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation