Globe/CP say Franco-Nevada buys interest in Gold Quarry

2008-12-24 05:02 ET - In the News

The Globe and Mail reports in its Wednesday, Dec. 24, edition that Franco-Nevada has agreed to acquire a 7.29-per-cent net smelter interest on the Gold Quarry property in Nevada for $103.5-million (U.S.) in cash (all figures Canadian unless otherwise stated).

A Canadian Press dispatch to The Globe reports the Toronto company said Tuesday expectations are for the purchase and sale agreement to close by the end of the year. CP notes Franco-Nevada has more than $500-million (U.S.) in cash and other assets to pay for new investments.

The Gold Quarry royalty property is a 200-hectare parcel of land in the Carlin district of north-central Nevada that covers a portion of the current Gold Quarry open pit mine of Newmont Mining.

Franco-Nevada expects the Gold Quarry royalty to complement the company's other gold royalties in Nevada and become a core addition to its portfolio of more than 285 royalty interests.

Franco-Nevada stock jumped 41 cents to close Tuesday on the Toronto Stock Exchange at $20.06. The stock has a one-year range of $11.62 to $24.96. The Globe's Fabrice Taylor featured the buy recommendation of stockbroker Murray Pollitt on Aug. 29 when the shares were trading at $21.

Hg