Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Report on Business


News and analysis on Bay Street and the world of finance
available exclusively to subscribers of Globe Unlimited

Entry archive:

Franco-Nevada stocks up a war chest Add to ...

Franco-Nevada built a war chest on Wednesday with a $322-million bought deal equity sale.

Franco-Nevada needs capital to fund junior gold mining plays, which continue to struggle with project financing. The company raised money by selling 10 million units at $32.20 each. Each unit consists of a common share and half a warrant, and a full warrant can be used to purchase a share for $75 over the next eight years.

BMO Nesbitt Burns, GMP Securities and CIBC World Markets led the equity offering, which can be boosted to $370-million at the underwriters' option.

Franco-Nevada was spun out of Newmont Mining two years ago. The financier has a strong reputation as a partner to junior companies, because it tends to put up capital in exchange for a percentage of future gold production, rather than asking for equity in the mining company, which dilutes existing shareholders.


In the know

Most popular videos »


More from The Globe and Mail

Most popular