|Operator:||Great Basin Gold Limited|
|Last Updated:||March 26, 2014|
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. 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.
In April 2013, through a bankruptcy proceeding, the Hollister mine and Esmeralda mill, formerly operated by Great Basin Gold Limited, were purchased by Waterton Global Resources Management (“Waterton”). As part of the proceeding, Waterton acknowledged and confirmed Franco-Nevada’s NSR royalty and granted Franco-Nevada an additional sliding scale NSR which is subject to gold price and production thresholds and is capped at $3.5 million. In November 2013, Waterton suspended mining at Hollister and laid off the majority of its work force. Waterton stated that it suspended operations to focus on resource definition drilling in order to enhance asset value and extend the life of the mine. No timeline was given for how long this evaluation will take.
|Revenue to Franco-Nevada ($ millions):||$ 1.8||$ 3.2||$ 5.0|