|Operator:||Great Basin Gold Limited|
|Last Updated:||May 29, 2013|
Hollister is an underground mine located at the northern end of the Carlin Trend in the Ivanhoe Mining District, Elko County, Nevada, approximately 121 km east-northeast of Winnemucca, Nevada. Great Basin Gold Limited (“GBG”) owns and operates the Hollister project.
Franco-Nevada holds a 5% NSR royalty on approximately 7,000 acres of the Hollister project. However, the NSR royalty is reduced by 2% on 45 claims known as the Hillcrest-Finley River Block, effectively giving Franco-Nevada a 3% NSR royalty on production from that area.
GBG initiated creditor protection proceedings in Canada under the Companies’ Creditors Arrangement Act in September 2012 and on February 25, 2013, GBG’s subsidiary, Rodeo Creek Gold Inc., and certain of its affiliates, entered US Bankruptcy Code Chapter 11 restructuring proceedings in Nevada. GBG has initiated a sales process for the Hollister mine but does not expect any interruptions in its day-to-day business.
Franco-Nevada will work with the ultimate purchaser of the Hollister mine with the objective of ensuring the continued payment of its royalty.
|Revenue to Franco-Nevada ($ millions):||$ 3.2||$ 5.0||$ 1.1|