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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.

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Security Price Change
FNV-T Franco-Nevada Corp. 63.69 1.12
1.79 %
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