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UPDATE 1-Franco-Nevada, Teck Resources reach streaming deal for Antamina mine

Published 2015-10-07, 06:57 a/m
© Reuters.  UPDATE 1-Franco-Nevada, Teck Resources reach streaming deal for Antamina mine
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(Adds details from statement)
Oct 7 (Reuters) - Franco-Nevada Corp FNV.TO said it agreed
to pay Teck Resources Ltd TCKb.TO $610 million to help fund
operations at the Antamina mine in Peru in exchange for a share
of silver production.
In so-called "streaming" transactions, a streaming company
such as Franco-Nevada provides a miner with funds upfront in
exchange for a portion of future production at a set price.
Gold-focused royalty and stream company Franco-Nevada will
also pay 5 percent of the spot silver price for each ounce of
silver delivered under the stream.
Franco-Nevada expects 900,000 ounces to 1.1 million ounces
of silver from the Antamina mine in the fourth quarter.
Teck operates the Antamina mine along with joint venture
partners BHP Billiton Plc BLT.L , Glencore Plc GLEN.L and
Mitsubishi Corp 8058.T .
The deal comes in two days after Franco-Nevada revised its
deal with First Quantum Minerals Ltd FM.TO FQM.L for a
copper-gold Cobre Panama project in Central America.

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