Skip to main content

Rafal Gerszak/rafal gerszak The Globe and Mail

Franco-Nevada Corp. said Thursday it has agreed to buy metals royalty company Lumina Royalty Corp. for $60-million (U.S.) in common shares and $6-million worth of warrants.

The deal would see an exchange ratio of 0.03487 Franco-Nevada common shares and 0.01917 Franco-Nevada warrants for each Lumina Royalty share.

Lumina owns royalties on four development stage porphyry deposits in Chile and Argentina.

Story continues below advertisement

"These royalties provide exposure to very large resources in established mining countries and are expected to add to Franco-Nevada's long-term growth profile," president and CEO David Harquail said in a statement.

"The Relincho property is already in the development pipeline of Teck, a top-tier mine operator, and has the potential to be a long-life cornerstone royalty for Franco-Nevada."

Lumina Royalty was spun off from Lumina Copper Corp. earlier this year.

The company's board has recommended that its shareholders vote in favour of the deal. Holders of about 32.2 per cent of Lumina's stock have already agreed to tender their shares to the bid, which requires approval by two-thirds of all shareholders and a majority of minority holders.

Franco-Nevada is a gold-focused royalty and stream company with additional interests in platinum group metals, oil and gas, and other assets.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

If your comment doesn't appear immediately it has been sent to a member of our moderation team for review

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.