https://s21.q4cdn.com/700333554/files/doc_news/2014/Franco_Nevada_Press_Release_Oct_6.pdf

In 2014, when gold was around $1400 US per ounce, Franco-Nevada paid 648M US for the below.

"The stream will cover 68% of the payable gold and silver from 100% of the mine (85% of the Lundin-attributable payable gold and silver). The stream will reduce to 40% (50% of Lundin-attributable payable gold and silver) after 720,000 ounces of gold and 12 million ounces of silver have been delivered to Franco-Nevada."

"Based on expected mine performance, full year contributions to Franco-Nevada from Candelaria are expected to average 60,000 to 70,000 GEOs per year over the next 5 years with 2015 expected to be a stronger than average year."

The above mine produces around 100K of Gold Eq per year.  Considering that Schaft Creek would produce LOM around 220K ounces of Gold equivalent (including silver) per year, I could easily see Franco-Nevada paying 2.2 times this amount (1.4B US) for a similar stream at SC once in production.

That would make our 25% worth over 450M CAD for 68% of our gold/silver content (first 10 years) and 40% afterwards.  Extrapolating this to a full stream (100% of our 25%), our gold/silver content could be worth over 800M CAD and we would still be left with Copper & Moly.

Since this deal was done with a mine already in production, in order to compare with SC, I believe we would still need to apply a reasonable discount per year until SC is in production.  The goal was only to show another option/value for our 25%.

Who knows, maybe Teck and CF will want to stream 100% of the goal/silver together?  That would be a massive transaction, possibly above 2.5B US!

IMO.

MoneyK