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Franco-Nevada To Acquire Silver Stream On Antamina Mine From Teck

TORONTO - Franco-Nevada Corporation has agreed to acquire a silver stream on production from the Antamina mine in Peru from Teck Resources Limited. Teck owns a 22.50% interest in Compania Miñera Antamina S.A. (CMA), the Antamina joint venture company, along with partners BHP Billiton Plc (33.75%), Glencore Plc (33.75%) and Mitsubishi Corporation (10.00%).
“The company is pleased to partner with Teck on the Antamina mine to create our first pure silver stream," said David Harquail, President and CEO of Franco-Nevada. This further strengthens and diversifies our portfolio with a proven, long-life, high-margin asset that will be immediately accretive. This investment provides our shareholders with metal price optionality over multiple cycles and potential further exploration and expansion upside.
Antamina is an established mine that commenced operations in 2001. The mine is owned and operated by some of the largest and best regarded mining companies in the industry. The partners at Antamina have invested over US$6.5 billion to date in constructing and expanding the mine and its infrastructure.
The mine is the 8th largest copper mine in the world and is one of the lowest cost copper operations globally. The low-costs are facilitated by the high grade reserves and resources as well as the wholly owned mining infrastructure including a concentrate pipeline and port facilities.
Beyond the alternative mine plans currently being studied, there is resource expansion potential at depth which may be amenable to bulk underground mining. Additionally, Franco-Nevada remains exposed to any future throughput expansions as well as regional exploration potential (on existing CMA concessions) without further capital or funding commitments.