TSX:FNV 99.05 -0.49 -0.49%
Volume 606,413
May 23, 2019
NYSE:FNV 73.50 -0.65 -0.88%
Volume 535,410
May 23, 2019
Gold 1,284.91 +0.41 +0.03%
Volume
May 23, 2019
Contact Share

Franco-Nevada

Rosemont (Cu, Mo, Ag, Au)

Location: Arizona, United States
Operator: HudBay Minerals Inc.
Royalty: NSR: 1.5%

Franco-Nevada has a 1.5% NSR royalty covering all metals including copper, molybdenum, silver and gold extracted from the majority of claims covering the Rosemont project which is located in Pima County, approximately 30 miles southeast of Tucson, Arizona. The project is being advanced by Hudbay Minerals Inc. (“Hudbay”) following its acquisition of Augusta Resource Corporation. The Rosemont property contains three known potentially open-pit mineable deposits (Rosemont, Peach Elgin and Broadtop Butte) and is situated near a number of large porphyry type producing copper mines.

Hudbay released a feasibility study for the Rosemont project in March 2017, representing the first update since 2012 which was conducted by the previous operator. The study estimates total payable production of 1,864,000 metric tonnes of copper, 53,370,000 ounces of silver and 37,600 short tons of molybdenum over a 19 year mine life.

Hudbay received the Final Record of Decision for the project in June 2017 and in March 2019 received the Section 404 Water Permit from the U.S. Army Corps of Engineers, the final federal permit outstanding according to Hudbay. Following receipt of the permit, Hudbay announced that it will purchase United Copper & Moly LLC’s (“UCM”) 7.95% interest in the project and terminate all of the remaining earn-in and off-take rights with UCM. Hudbay has not provided an update to the planned spending for 2019 but has stated in the past that efforts would increase significantly if permitting is completed and the project is sanctioned for development during 2019.

ASSET HIGHLIGHTS:

  • Section 404 Water Permit received in March 2019, the final federal permit
  • New feasibility study released in March 2017
  • Franco-Nevada’s royalty covers all metals including copper, molybdenum, silver and gold

2018 2017 2016
Revenue to Franco-Nevada ($ million) $ - $ - $ -