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TORONTO, Dec. 31 /CNW/ - Franco-Nevada Corporation (TSX: FNV)
("Franco-Nevada") announced today that it has purchased 10% Senior
Secured Notes of Gold Wheaton Gold Corp. (TSX: GLW) ("Gold Wheaton")
from Sprott Asset Management LP for and on behalf of certain funds and
from SAMGENPAR Ltd. with an aggregate face value of C$100 million. The
notes were purchased for C$110 million plus accrued interest. The
purchase price is equal to the price at which the holder has the right
to call the notes in the event of a change of control of Gold Wheaton.
Two series of notes were purchased by Franco-Nevada: C$50 million face
value of Series 1 notes due May 26, 2014 and C$50 million face value of
Series 2 notes due November 26, 2014. The interest rate on both series
is 10% per annum. Gold Wheaton has a further C$7 million notes
outstanding under the same note indenture which are held by third
parties. Gold Wheaton has consented to the purchase of the notes by
Franco-Nevada.
About Franco-Nevada
Franco-Nevada Corporation (TSX: FNV) is a gold-focused royalty company
with additional interests in platinum group metals, oil and gas and
other assets. Its portfolio of high-margin cash flow producing assets
is located principally in the United States, Canada and Mexico. The
Company also holds a pipeline of potential future cash flowing assets
that are being developed, permitted or explored.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION: Certain information
contained in this press release, including any information as to future
financial or operating performance and other statements that express
expectations or estimates of future performance, may constitute
"forward-looking statements". All statements, other than statements of
historical fact, are forward-looking statements. The words
"anticipates", "plans", "estimate", "expect", "expects", "expected" and
similar expressions identify forward-looking statements.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies. The company cautions the reader that
such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual financial
results, performance or achievements to be materially different from
estimated future results, performance or achievements expressed or
implied by those forward-looking statements and the forward-looking
statements are not guarantees of future performance. Any
forward-looking statements contained in this press release are based
upon assumptions the company believes to be reasonable, including,
without limitation, any factors that cause actions, events or results
to differ from those anticipated, estimated or intended. Accordingly,
readers should not place undue reliance on forward-looking statements
because of the inherent uncertainty. For additional information with
respect to risks, uncertainties and assumptions, please also refer to
the "Risk Factors" sections of the company's most recent Annual
Information Form filed with the Canadian securities regulatory
authorities on
interim MD&A. The forward-looking statements herein are made as of the
date of this press release only and the company does not assume any
obligation to update or revise them to reflect new information,
estimates or opinions, future events or results or otherwise, except as
required by applicable law.
For further information: please go to our website atwww.franco-nevada.comor contact:
David Harquail Paul Brink
President & CEO SVP Business Development
416-306-6300 416-306-6300
