OPERATOR: Newmont Mining Corporation
ROYALTY: NSR: 0.5674-5%
The Sandman project is an advanced exploration project operated by Newmont, located approximately 22 km west of Winnemucca, Nevada. Franco-Nevada’s royalties on the Sandman project consist of: (1) a 0.5674% NSR on the first 200,000 ounces of gold produced from the royalty lands; and (2) a 5% NSR royalty on production from the 27 km2 of subleased private lands, payable only after the initial 300,000 ounces of gold have been produced. The Sandman project covers approximately 100 km2 and consists of mining claims and checkerboard fee lands. Franco-Nevada’s two royalties are on a portion of the project that covers a total of approximately 27 km2 of private lands under a mining sublease and approximately 10 km2 included in some 114 unpatented mining claims.