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Red Mountain (Au)

LOCATION: British Columbia, Canada
ROYALTY: NSR: 1% / Production Payment

Franco-Nevada has a 1% NSR as well as a $10/oz production payment on gold produced in excess of 1.85 million ounces from the Red Mountain project near Stewart, B.C. Franco-Nevada acquired the royalty as part of the Barrick royalty portfolio in November 2013. In March 2019, Ascot Resources Ltd. (“Ascot’) completed its acquisition of IDM Mining and its 100%-owned Red Mountain Project. In October 2019, Ascot announced an updated Mineral Resource estimate including 40 additional drill holes completed in Q4 2018. As a result, Measured and Indicated Mineral Resources increased by almost 200,000 ounces of gold compared to the 2017 feasibility study prepared by IDM Mining. IDM Mining’s feasibility study, released in June 2017, envisaged an estimated initial mine life of six years producing an average of 78,000 gold ounces per year. Ascot has stated that the updated Mineral Resource warrants an updated economic evaluation at feasibility level and plans to complete these studies in Q1 2020. The Red Mountain Gold Project received federal Environmental Assessment approval in January 2019 and proceeded to the regulatory phase during which Fisheries and Oceans Canada and Natural Resources Canada will consider their respective permitting and regulatory decisions.