El Salvador lawmakers overturn mining ban Bukele called absurd
El Salvador became the first country in the world to ban all forms of metals mining in 2017.
Canadian gold royalties company Franco-Nevada aims to raise C$340-million in an equity offering, it said on Tuesday.
The TSX- and NYSE-listed firm said it would use the cash for acquisitions, working capital and general corporate purposes.
BMO Capital Markets would lead the syndicate of underwriters that agreed to purchase on a bought deal basis eight-million shares at C$42.50 apiece – 5% discount to the stock’s closing price in Toronto on Tuesday.
Franco-Nevada said the underwriters had the option to buy an additional 1.2-million shares if there was an over-allotment, which would bring the aggregate gross proceeds up to C$391-million if exercised in full.
The offering was set to close on November 30, the company said.
Toronto-based Franco-Nevada pays money upfront to mining companies for the right to buy some of their precious metals by-product for a fixed cost. The firm, lead by CEO David Harquail, also provides funding for mining projects in return for royalties. It employs the model with some oil and gas projects.
The company earlier this month announced a 444% rise in third-quarter earnings to $44.1-miilion as it benefitted from its earlier acquisition of Gold Wheaton and higher metal prices.
The company ended the quarter with working capital of $420.3-million and no debt or hedges.
Shares in Franco-Nevada leapt 6% higher to close at C$44.71 on Tuesday. The company announced the bought deal financing after the market closed.
The stock has gained 34% over the past 12 months.
The share offering is subject to conditions, including approval by the Toronto Stock Exchange and securities regulators.
