Vancouver – Franco-Nevada (FNV-T) is topping up its coffers with a bought-deal financing worth $322 million.
BMO Capital Markets, GMP Securities and CIBC World Markets are underwriting the financing.
Franco-Nevada will issue 10 million units at $32.20 a unit with each unit consisting of a share and a half share purchase warrant. Each warrant is redeemable for a common share at $75 over a period of eight years following closing of the financing.
In addition to the 10 million units Franco-Nevada will allow a 1.5 million unit overallotment.
It is the second whopper of a bought-deal Franco-Nevada has undertaken this year. In March Franco-Nevada closed a $267 million financing at $23.25 a unit.
The royalty-stream company, which derives much of its revenues from royalties on gold mines, says it will use the proceeds for acquisitions, working capital and general corporate purposes.
Franco-Nevada CEO David Harquail preferred not to discuss plans for acquisitions while the financing is ongoing. It is set to close June 16.
Franco-Nevada has amassed rights on over 400 assets in gold, base metals, oil and gas, and platinum group metals. Its most recent acquisition was a 50% gold royalty on Coeur d’Alene Mines‘ (CDE-N, CDM-T) Palmarejo project for US$80 million.
In 2008 Franco-Nevada had a net income of $40.3 million on $151 million in revenues.
Franco-Nevada’s share price gained 81¢ to $30.51 on news of the financing. The company has 100.3 million shares outstanding.
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