LATIN AMERICA — NEWS ROUNDUP — Franco seeks Don Mario royalty

Orvana Minerals (ORV-T) has signed an agreement granting Franco-Nevada Mining (FN-T) the option to buy a 2.5% net smelter royalty on production from the Don Mario gold-copper project in eastern Bolivia.

A feasibility study concluded that the breakeven gold price for the project would be US$221 per oz.

If Orvana reaches a production decision, Franco has 30 days to exercise the option. The option price is US$1.25 million.

Franco has also agreed to buy Orvana shares under a future rights offering. Under the agreement, which is subject to due diligence, Franco can buy up to 6.9 million shares at 20 cents each.