Ecuador-focused miner SolGold (LON, TSX:SOLG) has secured up to $150 million from streaming company Franco Nevada (TSX, NYSE: FNV), which it will use to develop its Alpala copper-gold project.
The company said the net smelter return (NSR) agreement includes an initial $100 million. Franco-Nevada, which provides natural resource companies with upfront cash in exchange for future production, will receive a perpetual 1% NSR.
The total amount could increase by $50 million, at SolGold’s discretion. The move would also increase the NSR for Franco Nevada to 1.5%.
The company said it would spend the coming months developing a feasibility study for Alpala, the largest deposit found at its Cascabel copper-gold asset, located 180 km north of Ecuador’s capital, Quito.
SolGold, which says its Ecuador project is one of the largest copper-gold porphyry systems ever discovered, expects to start production in 2025.
For the rest of this article: https://www.mining.com/solgold-scores-150m-funding-deal-from-franco-nevada/