In June of 2011, Franco-Nevada purchased a 1.5% gross royalty on part of Osisko Mining’s open pit Canadian Malartic gold project in Quebec. The royalty covers 7 claims including the center of the currently planned pit, which has since been brought into reserve. Some of the current exploration targets to the east of the pit also fall partially on the royalty claims. Royalty payments are expected to fluctuate annually based on the location of mining relative to the royalty property.

The Canadian Malartic project is located in the prolific Abitibi mining district and represents one of Canada’s newest and largest gold mines. Commercial production was achieved in June of 2011 and the company is targeting to produce an average of 575,000 ounces per year over a 16 year mine life. Proven and Probable reserves stand at 10.71 million ounces and there are an additional 1.18 million ounces in the Measured and Indicated and 0.85 million ounces in the inferred resource categories, respectively.