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Franco-Nevada

King Vol (Zn)

Location: Australia, Rest of World
Royalty: Production Payment
Operator: Auctus Minerals LLC

King Vol is an underground zinc mine located in Northern Queensland. Auctus Minerals LLC (“Auctus”) acquired the project in 2015, along with other assets in Northern Queensland, through the takeover of Atherton Resources Limited. Auctus finished construction of the 500,000 tonnes per annum Mungana Process Plant in April 2017 and developed the King Vol underground as a satellite deposit during 2017. In October 2017, Auctus commenced feeding ore mined from King Vol to the Mungana Process Plant. King Vol provided approximately 50% of the concentrate feed to the Mungana Process Plant until mid-2019 when the Mungana Mine was placed on care and maintenance. Since that time King Vol has provided 100% of feed to the Mungana Process Plant. During 2018, Franco-Nevada purchased a minority interest in the Production Payment from a private individual for A$320,000. In addition to a Production Payment, Franco-Nevada received a fixed payment of A$500,000 at commencement of commercial mining operations at King Vol, A$650,000 at the first anniversary of commencement and A$100,000 at the second anniversary. Once cumulative production exceeds 666,666 tonnes of ore, expected in early 2020, the production payment will increase from the current rate of A$1.20 per tonne of ore, to A$1.50 per tonne of ore.