Quadra FNX Mining (and previously FNX Mining) operates the Levack, Podolsky and McCreedy West mines in the Sudbury basin. The Sudbury basin is world renowned for the Ni-rich contact deposits typically located along the base of the Sudbury Igneous Complex. The footwall to the Sudbury Igneous Complex is also the host to footwall-style Cu-Ni-Pt-Pd-Au deposits. Quadra FNX sells ore from its Sudbury contact and footwall operations under contract to Vale Inco for processing at the Clarabelle Mill in Sudbury.

Franco-Nevada inherited the Sudbury Basin asset through its acquisition of Gold Wheaton in March 2011. In July 2008 Gold Wheaton entered into a gold stream agreement to purchase 50% of the contained gold, platinum and palladium (‘Gold Equivalent Production Ounces’) in ore mined and from certain footwall-style deposits then owned by FNX Mining for the life of any mining on the deposits. As consideration, Gold Wheaton agreed to an upfront payment of CDN$400 million to FNX and an ongoing payment per ounce of Gold Equivalent Production Ounce equal to the lesser of (i) USD$400 subject to an inflation adjustment commencing on the third anniversary after closing: and (ii) the then prevailing gold market price. Quadra's 2011 outlook for payable TPMs at Levack (Morrison) and Podolsky is approximately 20-25 thousand ounces each and McCreedy West at approximately 25-30 thousand ounces.

Updated: April 14, 2011