Royalty Financing
2023 Franco Nevada royalty
In July 2023, Tiernan entered into a Royalty Agreement (the “Agreement”) with a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”). The key terms of the Agreement are, as follows:
- $15 million cash payment by Franco-Nevada to Tiernan
- Creation of a new 1.5% net smelter return royalty on gold and copper production from Volcan in favour of Franco-Nevada
- Franco-Nevada retains a right of first refusal for any future royalty or stream financings for the Project
- Franco-Nevada holds an option to acquire a further 1% royalty on the Project at the time of a board-approved construction decision based on a feasibility study and consensus metal prices at the time
- Funds can be utilised for advancing the Project and business expenses for Tiernan