Mentioned:
A precious metals royalty giant is making a new bet on a gold project in Nevada. But, why?
What’s happening:
- Franco-Nevada (NYSE: FNV) has made a strategic royalty investment of $250M USD in i-80 Gold (NYSE: IAUX)
By the numbers:
- Franco-Nevada will initially receive a 1.5% net smelter return royalty on all of I-80 Gold’s projects which will then eventually increase to 3%
Why it matters:
- i-80 Gold’s Mineral Point project is one of the largest advanced exploration gold projects in Nevada
Going deeper:
- The Mineral Point project has millions of ounces of indicated gold and also has shown very large deposits of silver
- i-80 Gold has also raised an additional $250M USD concurrently with Franco-Nevada’s strategic investment from the National Bank of Canada and Macquarie Bank through a prepay facility
