Holloway Gold Camp - Ontario
| Royalty: | 0.25-15% NSR |
|---|---|
| 2009 Revenue: | $1.068 M |
| Operator: | St. Andrew Goldfields |
Franco-Nevada has multiple royalties over an extensive land package on the Destor-Porcupine mineral trend in Ontario owned and operated primarily by St Andrew Goldfields Ltd. (“St Andrew”). In late 2009, St Andrew reactivated the Holloway mine on which Franco-Nevada has a sliding scale royalty of 2% if the price of gold is $800/oz or less, increasing by 1% for every $100/oz increase in the price of gold, up to a maximum of 15%. In 2009, Franco-Nevada received $1,068,000 in royalty revenue from its Holloway royalty. With a full year of production in 2010 and the leverage of higher gold prices on the scaled royalty, royalty receipts are expected to exceed those of 2009. In addition to its Holloway royalty, Franco-Nevada’s royalties with St Andrew also include:
Hislop – The Hislop property is located approximately 50 kilometres to the west of the Holt mill, where ore will be trucked for processing. In 2009, Franco-Nevada purchased a 4% NSR royalty on the Hislop property with minimum royalty payment commitments. Hislop is currently undergoing pre-development activities and is expected to begin production in 2010.
Holt – The Holt property lies immediately south of Holloway and is the location of the Holt mill complex. Franco-Nevada has a sliding scale NSR royalty beginning at 2% when the gold price is less than or equal to $500/oz and increasing in 1% increments for each $100/oz increase in the gold price, to a maximum of 10%. The property is currently subject to a legal dispute.
Aquarius - The Aquarius property is located approximately 28 kilometres east of Timmins and contains an indicated resource of 1.1 million ounces of gold. Franco-Nevada holds a sliding scale NSR royalty on the Aquarius property which increases from 1% to 2% when the gold price is greater than $1,000/oz.
Taylor and Stock properties– Franco-Nevada holds a 1% NSR royalty on a portion of these former producers.
Central Timmins – Franco-Nevada has a 0.25% to 1% NSR on this exploration property.
